ChainCatcher report, according to The Block, in response to recent remarks by JPMorgan Chase CEO Jamie Dimon regarding stablecoin yields, White House digital assets advisor Patrick Witt offered a rebuttal. Dimon previously stated that platforms paying yields on stablecoins should be regulated like banks, as “holding balances and paying interest” constitutes banking activity. Witt responded on X, saying Dimon’s claim is misleading. He noted that what requires bank-like regulation is not the payment of yields on balances themselves, but rather the lending or re-collateralization of the underlying U.S. dollars that constitute those balances. The GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter, so stablecoin balances should not be equated with bank deposits.
White House Crypto Advisor Challenges JPMorgan CEO on Stablecoin Yields
ChaincatcherShare
Summary
White House digital asset regulation advisor Patrick Witt has pushed back on JPMorgan CEO Jamie Dimon’s remarks regarding stablecoin regulation. Dimon asserted that platforms offering yields on stablecoins should be regulated like banks. Witt, on X, argued that the core issue is the rehypothecation of USD, not the yield itself. He cited the GENIUS Act, which prohibits stablecoin issuers from engaging in such practices, and emphasized that stablecoin balances are not bank deposits.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.