Gate News reports that on March 12, Patrick Witt, Executive Director of the U.S. President’s Advisory Council on Digital Assets, posted 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 draining deposits as the banking industry warns. Witt pointed out that there is a huge global demand for the U.S. dollar, with foreigners exchanging stablecoins for local currency with U.S. issuers, which means new net capital is entering the U.S. banking system. Earlier this month, Witt also stated that earning interest on balances does not necessarily require banking-style regulation; what truly needs regulation is the lending or re-hypothecation of the dollars that make up the balances, and the GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter.
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