Trump's crypto advisor: Compliant stablecoins will drive global capital inflows into the U.S. banking system

Odaily Planet Daily reports that Patrick Witt, Executive Director of the U.S. President’s Advisory Committee on Digital Assets, stated that compliant stablecoins under the GENIUS Act framework will not weaken bank deposits but will instead promote global capital inflows into the U.S. banking system. Addressing concerns from the traditional banking industry that “interest-bearing stablecoins may lead to capital outflows,” Witt pointed out that there is a huge global demand for the U.S. dollar. When overseas users exchange their local currency for stablecoins issued by U.S. entities, it essentially injects net new capital into the U.S. financial system. He further emphasized that the GENIUS Act explicitly prohibits stablecoin issuers from engaging in lending or re-hypothecation activities, which are fundamentally different from traditional banking operations. Currently, debates over the nature of stablecoin rewards and interest incentives remain a major obstacle to legislation like the Clarity Act and other crypto market structure laws.