White House crypto advisor counters Jamie Dimon’s stablecoin yield logic

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, publicly countered JPMorgan CEO Jamie Dimon's assertion that platforms paying yield on stablecoins should be regulated like banks due to holding balances and paying interest. Witt argued that Dimon's logic is deliberately inaccurate, stating that the need for bank-like regulation stems from the lending or rehypothecation of the underlying dollar balances, not the mere payment of yield. He noted that the GENIUS Act explicitly forbids stablecoin issuers from engaging in such lending. This debate over stablecoin rewards remains a contentious point delaying broader crypto market structure legislation, as banks fear losing deposits while crypto advocates see stablecoins offering consumer diversity. The White House has recently hosted meetings between crypto and banking executives to negotiate a compromise.

(Source：The Block)