US banks question White House report on stablecoin yields.

Odaily Planet Daily reports that the US banking industry has questioned the White House's report on stablecoin yields, arguing that its conclusions are based on flawed questions. The White House Council of Economic Advisers report states that banning stablecoin yields would have a negligible impact on bank lending, increasing loans by only about $2.1 billion. American Bankers Association Chief Economist Sayee Srinivasan and Vice President Yikai Wang stated that the core policy concern is whether allowing stablecoins to generate yields would lead to deposit outflows, particularly from community banks to large institutions, thereby increasing funding costs and reducing local lending. The American Bankers Association acknowledges that the financial incentive to pursue high-yield stablecoins would prompt households and businesses to move funds out of banks. Currently, the crypto and banking industries are negotiating the terms of a Senate bill, with a ban on stablecoin interest payments being a key point of contention.