Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said GENIUS-compliant stablecoins could bring new capital into US banks instead of draining deposits.
He posted on X that foreigners exchanging local currency for stablecoins from a US-based issuer would create net new capital entering the US banking system.
Banking groups and the American Bankers Association warned that yield-bearing stablecoins could pull deposits and called for equal regulatory standards.
Rob Nichols, president and CEO of the American Bankers Association, said the industry welcomed competition but warned against an uneven playing field if cryptocurrency firms offer bank-like products without matching rules.
Cryptocurrency advocates said the GENIUS Act requires stablecoins to be fully backed by cash or cash-equivalent assets and forbids lending or rehypothecation of reserves.
Originally written by: Minh Le
Source: Tech In Asia
Published on: 13 March 2026
Link to original article: Trump advisor says stablecoins could drive deposits to US banks
