Patrick Witt, executive director of the President's Digital Assets Advisory Council, has asserted that stablecoins compliant with the GENIUS Act will enhance deposit inflows into the US banking system. Witt emphasized that the global demand for the US dollar is significant, and when foreigners exchange their local currencies for US-issued stablecoins, it results in new net capital entering the US banking system.
Witt also highlighted that paying returns on balances does not necessitate banking-style regulation. Instead, regulation should focus on lending or re-collateralizing the dollars that make up these balances, activities that the GENIUS Act explicitly prohibits for stablecoin issuers.
Trump's Crypto Advisor: Stablecoins to Boost US Bank Deposits
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