News 
Coin Information 
About us 
Customer Service 
A newly released White House Council of Economic Advisers report on stablecoin yields is drawing sharp criticism from banking insiders, even as crypto industry leaders welcome its conclusions. The dispute is adding fresh tension to ongoing CLARITY Act negotiations in the Senate.
The report concluded that stablecoin yields do not significantly threaten bank deposit levels. However, banking sources pushed back quickly, telling journalist Eleanor Terrett that the analysis missed the point entirely. Their concern is not whether total deposits decline, but how money moves — particularly out of smaller community banks and into larger institutions or digital asset platforms.
Bankers argue that retail deposit outflows change the structure of bank funding, even when aggregate numbers appear stable. Stablecoin reserves may eventually return to the banking system, but not in the same form. For community banks with limited funding alternatives, this shift can affect long-term credit deployment and pricing — effects that may not show up immediately in standard lending data.
Coinbase Chief Policy Officer Faryar Shirzad offered a different take, describing the report as a net positive for banks. He argued that stablecoins pose no real threat to community institutions and emphasized the consumer advantages of yield-bearing stablecoins under the CLARITY Act. His comments align with CEO Brian Armstrong's broader stance on market structure and stablecoin policy.
The disagreement reflects a deeper fault line in CLARITY Act talks — one between banks prioritizing funding stability and crypto firms focused on innovation and consumer access. Senators Thom Tillis, Bill Hagerty, and Cynthia Lummis had requested the report to help move negotiations forward.
Sources familiar with the process remain cautiously optimistic, though details on a potential deal stay limited. How both sides interpret this report will likely shape the next phase of stablecoin legislation.
Comment 0