Trump's crypto advisor: Stablecoins will drive global deposits into the US banking system

According to The Block, Patrick Witt, Executive Director of the U.S. Presidential Advisory Council on Digital Assets, stated on the X platform that stablecoins compliant with the GENIUS Act framework will actually bring deposit inflows to the U.S. banking system, rather than siphoning off deposits as warned by the banking industry.

Witt pointed out that there is a huge global demand for the U.S. dollar, with foreigners exchanging local currencies for stablecoins issued by U.S. entities, which means new net capital is entering the U.S. banking system. Earlier this month, Witt also mentioned that paying yields on balances does not necessarily require bank-like regulation; what truly needs regulation is the lending or re-collateralization of the dollars that make up the balances, and the GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter.