The White House Council of Economic Advisers (CEA) released a formal analysis on April 9, 2026, concluding that allowing stablecoin issuers to pay yields to investors would have only a marginal effect on bank lending. This finding directly contradicts warnings from the banking industry that have stalled the CLARITY Act in the U.S. Senate Banking Committee since January 2026.
The CEA report projects that permitting stablecoin yield would increase bank lending by approximately $2.1 billion, or just 0.02% of total loans outstanding. This challenges the banking lobby's argument that yield-bearing stablecoins would trigger systemic deposit flight. The analysis also estimates that, in an extreme scenario, lending might increase by $531 billion, with large banks capturing about 76% of that increase and community banks gaining roughly $129 billion.
However, the report flags a significant consumer cost. It projects that restrictions on stablecoin rewards could shift about $800 million in annual costs to consumers, as value generated by reserve assets would not be passed on to token holders.
The analysis is seen as a deliberate intervention to accelerate the CLARITY Act's path out of committee by neutralizing the empirical foundation of banking-industry opposition. Treasury Secretary Scott Bessent has publicly urged lawmakers to pass the act, warning that unclear rules could shift innovation offshore. The debate centers on whether to extend the yield prohibition from the GENIUS Act—which requires stablecoin issuers to maintain a one-to-one reserve of assets like Treasuries—to third-party exchanges.
The findings impact key industry players. Circle's USDC and competitors could offer returns rivaling money market funds if yield pass-through is permitted, potentially shifting stablecoin market share. Coinbase's Chief Legal Officer, Paul Grewal, hailed the report as decisive, stating it found no evidence that stablecoin rewards lead to deposit flight. The fate of the CLARITY Act now rests with Senators Thom Tillis and Angela Alsobrooks, who reached a preliminary agreement with White House officials in March 2026 to address yield disputes.
