The White House released a study estimating that banning interest on stablecoins would modestly increase bank lending. Under the GENIUS Act, stablecoin issuers must back tokens at a one‑to‑one ratio with specific reserves and cannot offer yield. The agency’s model shows that eliminating yield would raise lending by $2.1 billion, a 0.02 % rise, but cost $800 million in welfare. Large banks would provide 76 % of the additional lending, while community banks would add $500 million, a 0.026 % lift. Even under extreme assumptions the model yields only a $531 billion jump, a 4.4 % rise, requiring an unrealistically large stablecoin market. The study concludes that a yield ban would minimally protect lending and would forgo consumer benefits of competitive stablecoin returns.
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