PANews 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 more aligned with the crypto industry than the banking sector.

TD Cowen analysts believe that as long as smaller banks continue to view stablecoins as a threat to their deposit business, they will oppose crypto legislation unless the bill explicitly prohibits stablecoin yields. The analysts also point out that the report suggests President Trump may want to allow stablecoin yields, meaning that a compromise that allows platforms to pay for the use of rewards but prohibits holding those rewards may not gain presidential support, making the passage of the Clarity Act even more difficult. TD Cowen had previously lowered its expectation for the bill to pass this year to one-third.