ME News reports that on April 13 (UTC+8), the American Bankers Association (ABA) publicly criticized the White House Council of Economic Advisers’ (CEA) report on stablecoins, stating that its analytical approach was fundamentally flawed. The CEA report claimed that prohibiting interest payments on stablecoins has minimal impact on protecting bank lending, increasing loans by only 0.02%, while harming consumer interests. However, the ABA countered that the report ignored the real risks: allowing interest-bearing stablecoins could trigger massive deposit outflows from community banks, raise financing costs, and tighten local credit availability. The ABA emphasized that the CEA’s focus on the “impact of a ban” creates a false sense of security, as the rapid scaling of interest-bearing stablecoins poses a far more destructive scenario. (Source: ODAILY)
ABA Criticizes White House Stablecoin Report for Misjudging Risks
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Summary
On April 13 (UTC+8), the American Bankers Association (ABA) strongly criticized the White House Council of Economic Advisers (CEA) for its stablecoin report, calling its risk assessment fundamentally flawed. The CEA claimed that banning stablecoin yields would have minimal impact on bank lending, but the ABA argued that interest-bearing stablecoins could cause deposit outflows from community banks, increasing funding costs and tightening credit. The ABA warned that the CEA’s narrow focus on “ban impacts” overlooks the broader threat posed by the rapid growth of stablecoins. On-chain data reveals rising Proof of Work (PoW) activity, underscoring ongoing shifts in the blockchain landscape.
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