2 hours ago
White House advisor Patrick Witt said yield-bearing stablecoins needn't to look slope rules due to the fact that the Genius Act bars issuers from lending reserves.
Mar 4, 2026, 1:16 p.m.
The White House’s crypto advisor pushed backmost connected JPMorgan CEO Jamie Dimon’s assertion that stablecoin issuers who wage involvement should beryllium regulated similar banks.
Stablecoins request not beryllium treated similar deposits due to the fact that the Genius Act explicitly bars issuers from lending the reserves that backmost their tokens, Patrick Witt, the enforcement manager of the President’s Council of Advisors for Digital Assets, wrote successful an X post.
Dimon said banks privation stablecoin issuers that wage involvement connected lawsuit balances to look the aforesaid rules arsenic accepted lenders, sharpening the statement implicit U.S. crypto regulation.
He besides addressed reported tensions with Coinbase CEO Brian Armstrong, who withdrew enactment for the projected Clarity Act a time earlier the Senate Banking Committee was scheduled to ballot connected the legislation. Dimon argued determination needs to beryllium a enactment betwixt rewards paid connected transactions and involvement paid connected stored balances.
“Rewards are the aforesaid arsenic interest,” Dimon said. “If you are going to beryllium holding balances and paying interest, that’s the bank. You should beryllium regulated by a bank.”
Banks would judge a compromise successful which crypto platforms connection rewards tied to transactions, helium said. But firms that relation similar deposit-taking institutions should conscionable the aforesaid standards arsenic banks, including superior and liquidity rules, anti-money laundering controls and national deposit security requirements.
“The deceit present is that it is not the paying of output connected a equilibrium per se that necessitates bank-like regulations, but alternatively the lending retired oregon rehypothecation of the dollars that marque up the underlying balance,” Witt said. Rehypothecation occurs erstwhile banks usage clients' collateral to enactment their ain borrowing.
He besides pointed to the Genius Act, which helium said “explicitly forbids stablecoin issuers from doing the latter. Stablecoins ≠ Deposits.”
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U.S. President Donald Trump said successful a station connected Truth Social that the banking manufacture is trying to undermine the stablecoin measure helium signed into instrumentality past year.
What to know:
- U.S. President Donald Trump attacked banks successful a Truth Social post, saying they were holding marketplace operation authorities "hostage" implicit their absorption to stablecoin output payouts.
- Trump urged speedy transition of the bill, saying it was important for the U.S. to stay astatine the forefront of crypto legislation.
- Negotiations are ongoing betwixt the White House and crypto and banking manufacture representatives implicit the connection successful the bill.
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