A new report released by the US Presidential Council of Economic Advisers calls into question the banking industry’s claims that stablecoin returns will reduce deposits and restrict credit opportunities. The study reveals that banning stablecoin returns will not lead to a significant increase in bank loans.
Stablecoin returns and bill discussions
In the prepared analysis, the changes to be made in the GENIUS Act, approved in July 2025, and the Digital Asset Market Clarity Act, which is envisaged to restrict rewards in the form of stablecoin returns, were examined. The report notes that while such bans will only make a limited contribution to protecting traditional banking, they will eliminate the competitive return benefits that consumers can derive from holding stablecoins. Additionally, it was pointed out that even if returns were completely banned, credit growth in the banking sector would remain at very low levels.
Banks had argued that stablecoins offering high returns would lead depositors to direct their money to digital assets, which would reduce lending capacity. Industry representatives are of the opinion that stablecoin rewards will not harm the financial ecosystem. The report also shows that the main claims put forward by the banks remain weak.
The process that pits bankers and the crypto industry against each other
Recently, discussions on digital asset regulations have gained momentum in the US Congress. It is known that the delay in legal regulations is caused by differences of opinion between banks and cryptocurrency companies. US President Donald Trump and his team, together with industry representatives, are making attempts to reach agreement on the new legislation.
The American Bankers Association also touched upon the possible effects of stablecoins offering returns on small-scale banks. Banks argued that small-scale institutions could suffer as their core customer base turns to digital assets. On the other hand, the report stated that stablecoin activities are mostly concentrated in large financial institutions, and the real impact on small banks will be limited.
Economic experts at the White House pointed out that stablecoin-related funds can often be transferred to assets such as Treasury bills and re-deposited in other banks. Thus, it was emphasized that there was no significant change in total deposits.
The findings showed that only a small portion of stablecoin reserves were held in a way that could narrow lending availability. It is also reported that, thanks to banks’ reserve requirements and liquidity buffers, the potential impact is largely prevented from being reflected in the credit market.
The report highlighted that claims that stablecoin returns pose a serious risk to small banks do not meet much in practice. It was stated that if returns were prohibited by law, small banks’ credit facilities could only increase by approximately $500 million; This ratio indicates a very low level in the total volume.
The report included the assessment that “the yield ban will have a very limited effect on protecting banking credit, while it will cause stablecoin users to give up the competitive returns they deserve.”
