Data Refutes 'Deposit Flight' Theory: White House Takes a Negative Stance on Banning Stablecoin Yields

Data Disproves Concerns of 'Deposit Flight'

The White House Council of Economic Advisers (CEA) published a research report on April 8 analyzing the impact of yield provision on stablecoins on banking credit activities. The report quantitatively concludes that the banking industry's requested measures to ban yields contribute very little to the protection of bank lending.

The Genius Act, enacted in July 2025, prohibits issuers from directly providing yields,...