Trump administration plans interactive tool to counter bank concerns over stablecoins: Report

The White House Council of Economic Advisers published a report examining what happens to bank lending if the GENIUS Act’s prohibition on stablecoin yield holds, and the numbers are considerably less dramatic than banking lobbyists have suggested. The CEA paired the report with an interactive model explorer, letting anyone adjust variables like stablecoin market share and household yield sensitivity to see projected outcomes in real time. What the numbers actually say The CEA’s core finding is that banning yield on payment stablecoins would increase total bank lending by roughly $2.1B, about 0.02% of total outstanding loans. For community banks specifically, the projected boost is $0.5B, or approximately 0.026% of their loan books. The GENIUS Act, signed into law in July 2025, requires stablecoin issuers to maintain a 1:1 reserve in safe assets and bars them from paying any yield or interest to holders. The fear from banking groups is that without that prohibition, yield-bearing stablecoins could balloon into a $1-2 trillion market, pulling deposits out of local banks that depend on community funding to underwrite small business loans and mortgages. The CEA’s model concedes that in...