Gate News message: On April 14, the U.S. banking industry questioned a stablecoin yield report issued by the White House, saying the report’s conclusions are based on incorrect policy focus. A research report from the White House Council of Economic Advisers states that banning stablecoin yields on bank lending has a negligible impact and can only increase loans by about $2.1 billion. Sayee Srinivasan, Chief Economist of the American Bankers Association, and Yikai Wang, Vice President, said the core policy focus should be whether allowing stablecoins to generate yield would trigger deposit outflows—especially from community banks to large institutions—thereby increasing funding costs and reducing local lending. The American Bankers Association acknowledged that financial incentives to pursue high-yield stablecoins would prompt households and businesses to move funds out of banks. The crypto industry and the banking industry are currently negotiating the terms of a Senate bill, and a ban on paying stablecoin interest is a key point of contention.
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