ChainCatcher reports that, according to The Block, White House digital asset advisor Patrick Witt has responded to JPMorgan CEO Jamie Dimon’s recent comments about stablecoin yields.
Dimon previously stated that platforms paying stablecoin yields should be regulated like banks because “holding a balance and paying interest” constitutes banking activity. Witt responded on X, saying Dimon’s statement is misleading.
He pointed out that what requires banking-style regulation is not the yield on the payment balance itself, but the lending or rehypothecation of the underlying USD that makes up the balance. The GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter, so stablecoin balances should not be equated with bank deposits.
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White House Crypto Advisor refutes JPMorgan CEO's comments on stablecoin yields
ChainCatcher reports that, according to The Block, White House digital asset advisor Patrick Witt has responded to JPMorgan CEO Jamie Dimon’s recent comments about stablecoin yields.
Dimon previously stated that platforms paying stablecoin yields should be regulated like banks because “holding a balance and paying interest” constitutes banking activity. Witt responded on X, saying Dimon’s statement is misleading.
He pointed out that what requires banking-style regulation is not the yield on the payment balance itself, but the lending or rehypothecation of the underlying USD that makes up the balance. The GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter, so stablecoin balances should not be equated with bank deposits.