Effects of Stablecoin Yield Prohibition on Bank Lending

2026

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AI-generated summary

1) A prohibition on stablecoin yield would have a quantitatively small impact on bank lending, with minimal welfare gains.
2) This report analyzes the effects of stablecoin yield prohibition on bank lending, modeling the impact on deposit shifts, lending capacity, and overall welfare.
3) The study finds that while a yield prohibition could lead to a slight increase in bank lending, the welfare costs outweigh the benefits, and the impact on community banks is negligible.
Tags: stablecoin, bank lending, yield prohibition, monetary policy, financial regulation

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