The White House's stablecoin report is unlikely to push the CLARITY Act forward.

TD Cowen: White House Stablecoin Report Unlikely to Clear Legislative Hurdles

The White House's recent stablecoin report is unlikely to remove political roadblocks for crypto legislation, according to TD Cowen. The firm also said the path forward for the Clarity Act may be getting tougher.

The report noted that banning stablecoin yields would have a minimal impact on bank lending—adding just $2.1 billion, or 0.02% of total loans. That stance, TD Cowen said, aligns more with the crypto industry than with banking.

As long as small banks see stablecoins as a threat to their deposit business, they will oppose crypto legislation unless a bill explicitly bans stablecoin yields, the analysts argued. They also pointed out that the report suggests President Trump may want to allow stablecoin yields. That means a compromise—allowing usage-based rewards but banning holding rewards—might not win presidential support, making the Clarity Act even harder to pass. TD Cowen had previously cut its odds for the bill passing this year to one in three.