TD Cowen: White House Stablecoin Report Fails to Overcome Legislative Obstacles, Clarity Act May Face Greater Difficulties

CoinFeed reported on April 10th that, according to The Block, TD Cowen stated that the recent White House report on stablecoins is unlikely to eliminate the political obstacles facing cryptocurrency legislation, and the path forward for the Clarity Act may be even more difficult. The report points out that banning stablecoin yields would have a negligible impact on bank lending, resulting in only $2.1 billion in growth (0.02% of total loans), a stance closer to the viewpoint of the crypto industry than the banking sector. TD Cowen analysts believe that as long as small banks continue to view stablecoins as a threat to their deposit business, they will oppose crypto legislation unless the bill explicitly bans stablecoin yields.