White House Report Stokes Fears of Tougher Road Ahead for US Crypto Bill

A recent White House report on stablecoins is unlikely to clear the path for U.S. crypto legislation, according to TD Cowen's Washington Research Group.

The investment firm warned that the road ahead could get harder, not easier, depending on how the administration's position on stablecoin yield is interpreted.

The White House Council of Economic Advisers released a report on Wednesday, finding that banning stablecoin yield would increase bank lending by just $2.1 billion, or 0.02% of total loans.

Banks have argued the opposite for months, warning that stablecoin rewards could trigger trillions of dollars in deposit outflows and weaken the lending market.