Trump crypto adviser rebuts Jamie Dimon’s call to treat yield stablecoins like banks
A White House adviser rejected Jamie Dimon's call to regulate yield-bearing stablecoins like banks, citing the Genius Act's lending prohibition.Summary
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets and a crypto adviser to the White House, countered JPMorgan CEO Jamie Dimon's assertion that stablecoin issuers paying interest should face bank-like regulation. Witt argued that yield-bearing stablecoins do not require bank regulation because the proposed Genius Act explicitly bars issuers from lending out the reserves backing their tokens, distinguishing them from deposits. Dimon had argued that paying yield on stored balances constitutes a banking function requiring capital, liquidity, AML controls, and federal deposit insurance. Witt clarified that the regulatory concern should be the lending or rehypothecation of underlying dollar balances, which the Genius Act forbids for stablecoin issuers, leading to the conclusion: "Stablecoins ≠ Deposits."
(Source：CoinDesk)