22 hours ago
White House: Effects of Stablecoin Yield Prohibition on Bank Lending
> The White House Council of Economic Advisers finds that prohibiting stablecoin yield would increase bank lending by only $2.1 billion (0.02%) at baseline, while imposing an $800M net welfare cost, resulting in a 6.6 cost-benefit ratio against the prohibition. Large banks capture 76% of gains, community banks account for ~$500M (+0.026%).
> Even under worst-case assumptions, aggregate lending would only rise 4.4% ($531B) and community bank lending gain 6.7% ($129B), making the prohibition ineffective at protecting banks while eliminating consumer benefits.👇
Source: https://www.whitehouse.gov/resear...
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〽️ Crypto Pulse 👉 @degendaoinfo #crypto
> The White House Council of Economic Advisers finds that prohibiting stablecoin yield would increase bank lending by only $2.1 billion (0.02%) at baseline, while imposing an $800M net welfare cost, resulting in a 6.6 cost-benefit ratio against the prohibition. Large banks capture 76% of gains, community banks account for ~$500M (+0.026%).
> Even under worst-case assumptions, aggregate lending would only rise 4.4% ($531B) and community bank lending gain 6.7% ($129B), making the prohibition ineffective at protecting banks while eliminating consumer benefits.👇
Source: https://www.whitehouse.gov/resear...
_
〽️ Crypto Pulse 👉 @degendaoinfo #crypto
