## American Bankers Association Slams White House Stablecoin Study, Warns of Underestimated Threat to Community Banks
The American Bankers Association (ABA) is firing back at the White House, accusing its latest economic analysis of asking the wrong questions and dangerously underestimating the threat stablecoins pose to the nation's community banks. The powerful lobby's sharp critique targets a 21-page study from the White House Council of Economic Advisers, which modeled the impact of banning yield on payment stablecoins. The ABA's warning signals a significant rift between the banking industry and the administration's economic policy team over the future of digital currency regulation.

The core of the dispute lies in the White House report's narrow focus. Released on April 8, the study analyzed the potential effects of a provision in the proposed 2025 GENIUS Act that would prohibit payment stablecoin issuers from paying interest. The economists concluded that such a ban would only increase bank lending by about $2.1 billion—a marginal 0.02% of a $12 trillion loan portfolio. The report further estimated consumers would lose roughly $800 million in potential returns, creating a cost-benefit ratio where the lost yield for users far outweighs the minimal gains from slightly lower borrowing costs.

For the ABA, these findings miss the larger, systemic risk. The lobby argues the study's framework is flawed because it fails to adequately model how a rapidly expanding, yield-bearing stablecoin ecosystem could fundamentally disrupt the deposit base and lending capacity of smaller, community-focused financial institutions. The association's public rebuttal applies direct pressure on policymakers, suggesting the current regulatory approach is based on an incomplete analysis that could leave critical parts of the banking sector exposed. This clash sets the stage for intensified lobbying as the stablecoin debate moves closer to potential legislation.
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- **Source**: ZeroHedge
- **Sector**: The Vault
- **Tags**: Stablecoins, Banking Lobby, Financial Regulation, White House, Community Banks
- **Credibility**: unverified
- **Published**: 2026-04-13 19:52:54
- **ID**: 62523
- **URL**: https://whisperx.ai/en/intel/62523