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

PANews reported on March 12th that, according to The Block, Patrick Witt, executive director of the President's Digital Assets Advisory Council, stated in an article on the X platform that stablecoins compliant with the GENIUS Act will actually bring deposit inflows to the US banking system, rather than absorbing deposits as the banking industry has warned. Witt pointed out that global demand for the US dollar is huge, and foreigners exchanging their local currencies for stablecoins from US issuers means new net capital entering the US banking system. Earlier this month, Witt also stated that paying returns on balances does not necessarily require banking-style regulation; what truly needs regulation is lending or re-collateralizing the dollars that constitute the balances, and the GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter.