🚨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, impose costs on consumers, and concerns around deposit flight are overstated. The data: At baseline, eliminating yield increases lending by just 0.02% (~$2.1B) and results in a net welfare loss. On deposit flight: The report finds those concerns are “quantitatively small,” noting most stablecoin reserves remain within the banking system, with only a limited share truly removed from lending activity. “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 report below ⬇️(Eleanor Terrett)