🚨JUST IN: The White House Council of Economic Advisers has released its study on stablecoin yield and its potential impact on deposit flight and bank lending — the same report I noted last month that Senate Banking lawmakers were pressing the White House to release. The TLDR: Banning stablecoin yield would do little to boost bank lending. The data: At baseline, eliminating yield increases lending by just 0.02% (~$2.1B) and results in a net welfare loss. “In short, a yield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings,” the executive summary reads. Link to the full report below. ⬇️(Eleanor Terrett)