The White House released an interactive tool that lets users run the CEA's economic model on stablecoin yields ahead of a Senate procedural vote on the CLARITY Act. The CEA's baseline finds a ban on stablecoin yield would raise lending by about $2.1 billion (0.02% of total loans) and impose an $800 million annual net welfare cost, suggesting costs exceed benefits by roughly 6.6 to 1. Senate Republicans and crypto-friendly Democrats remain divided, and the bill needs 60 votes to advance.
White House Publishes Interactive CEA Model to Undercut Bank Opposition Ahead of CLARITY Act Senate Vote
Stablecoins Vs Bank Deposits: White House Arms Senate Republicans With New Tool Ahead Of CLARITY Vote
The White House on Tuesday launched an interactive web tool that lets users run the economic model behind a Council of Economic Advisers (CEA) paper on stablecoin yields — a move aimed at weakening the banking sector's central objection to the Digital Asset Market Clarity Act (CLARITY Act) just hours before a Senate procedural vote.
What the Model Finds
Using the CEA's baseline assumptions, the model indicates that banning stablecoin yield would have a negligible effect on overall bank lending. The CEA estimates a ban would increase lending by about $2.1 billion — roughly 0.02% of total loans — with community banks accounting for approximately $0.5 billion of that gain. The analysis also calculates a net annual welfare cost of about $800 million, implying the costs would outweigh benefits by roughly 6.6 to 1.
Interactive Tool and Transparency
The new site allows users to "set the parameters, run the scenarios" and draw their own conclusions from the agency's model, CEA Chair Chris Phelan told Semafor. The site includes an FAQ and formal responses to critics, and the administration says the tool is intended to make the CEA analysis transparent for policymakers and the public as the Senate decides whether to advance the CLARITY Act.
Reactions From Officials and Industry
Patrick Witt, executive director of the President's Council of Advisers for Electronic Assets, told Semafor the data do not support claims from bank lobbyists that stablecoin rewards are driving a deposit flight from community banks. Witt added that the CLARITY Act text includes protections for community banks in the event of deposit outflows — protections banks would not have if the bill fails.
Still, the banking industry pressed its case. A letter from eight banking groups argued recent changes to the bill's stablecoin provisions were insufficient. Several Senate Republicans have signaled caution: Senator John Cornyn (R-TX) said he remained unsure the latest draft resolved community bankers' concerns, while Senate Majority Whip John Thune (R-SD) said last week looked poor and he would reassess vote prospects.
Separately, some crypto-friendly Democrats criticized revised ethics language as too weak to adequately restrain President Donald Trump's potential influence, introducing another line of opposition within the Democratic caucus.
Market Response
Ahead of the vote, shares of major crypto firms slipped in premarket trading. Coinbase Inc. (COIN) and Circle Internet Financial (CRCL) each fell more than 4% in premarket hours. On the Stocktwits platform, retail sentiment around COIN moved into a "bearish" zone while chatter rose to normal levels; CRCL sentiment fell from "extremely bearish" to "bearish," with low overall chatter over the past 24 hours.
Procedural note: The Senate was scheduled to hold a procedural vote to consider the CLARITY Act; advancing the bill requires 60 votes.
For updates and corrections, contact newsroom[at]stocktwits[dot]com. Anushka Basu has no position in the stocks mentioned. StockTwits' news team content is for informational purposes and is not investment advice; see the editorial policy on the original site.
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