The Transparency Law receives a strong boost after a study conducted by the White House

A study conducted by the White House Council of Economic Advisers indicated that its model shows concerns that stablecoin rewards pose a risk to bank deposits are "quantitatively small." They pointed out that the prohibition of yields in the GENIUS Act and the proposed enhancement in the CLARITY Act may have sparked fears that competitive stablecoin yields could lead to withdrawals from the banking system.

However, their research showed that this is unlikely. The banking sector has long clashed with the digital currency sector over the stablecoin yield provision in the cryptocurrency bill, arguing that customer rewards would lead to deposit withdrawals.

This disagreement has been the main obstacle to advancing the (CLARITY Act), with the Senate Banking Committee having to suspend discussions on the bill in hopes of reaching a compromise between the two sides. As CoinGape reported, banking and crypto industry leaders are optimistic about reaching an agreement soon on the latest stablecoin yield provisions.

This report is likely to play a pivotal role in reaching an agreement. White House economists explained why concerns are quantitatively small, noting that stablecoin reserves are recycled through the banking system as regular deposits, and that only about 12% retained in bank accounts is actually deprived of leverage.