White House crypto advisory group 'rebuts head-on' JPMorgan… "Stablecoins are different from bank deposits"
Summary
- The White House cryptocurrency advisory committee said stablecoins should be regulated differently from bank deposits.
- Witt said applying bank-level regulation to the act of paying interest is deceitful.
- Witt said the GENIUS Act (stablecoin bill) prohibits lending reserve dollars and using them for rehypothecation.
Forecast Trend Report by Period
The White House cryptocurrency advisory committee said stablecoins should be regulated differently from bank deposits.
Patrick Witt, executive director of the White House crypto advisory group, wrote on X on the 4th (local time) that "it is deceit to argue that simply paying yield on balances should trigger bank-level regulation." Witt said bank regulation is needed not because interest is paid, but because banks lend out deposited dollars or use them for rehypothecation.
Witt’s remarks were widely seen as taking aim at JPMorgan CEO Jamie Dimon. Dimon recently argued that yield-bearing stablecoins should be regulated like banks. "If you hold balances and pay interest on them, that’s a bank," he said, adding that "(stablecoins) should be regulated like banks."
Witt stressed that "stablecoins are not the same concept as bank deposits." He noted that the GENIUS Act (the stablecoin bill) explicitly bans stablecoin issuers from lending the dollars held as reserves or using them as rehypothecation collateral.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
