ChainCatcher report, according to The Block, Patrick Witt, Executive Director of the U.S. President’s Advisory Committee on Digital Assets, posted on X that stablecoins compliant with the GENIUS Act framework would actually attract deposits into the U.S. banking system, rather than drain them as the banking industry has warned. Witt noted that global demand for the U.S. dollar is substantial, and when foreign individuals exchange their local currencies for stablecoins issued by U.S.-based entities, this represents new net capital flowing into the U.S. banking system. Earlier this month, Witt also stated that paying yields on balances does not inherently require bank-like regulation; the true focus for regulation should be on lending out or re-collateralizing the dollars underlying those balances—something the GENIUS Act explicitly prohibits stablecoin issuers from doing.
Trump’s Crypto Advisor: Stablecoins to Drive Global Deposits into the U.S. Banking System
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Summary
Patrick Witt, head of the U.S. President’s Digital Asset Advisory Committee, said that stablecoins under the GENIUS Act would direct global deposits into U.S. banks. He noted that foreign demand for dollar-linked stablecoins increases inflows, supporting CFT goals. The framework avoids bank-like regulations on yield payouts but prohibits lending of reserves, aligning with broader digital asset regulatory efforts.
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