White House advisor says GENIUS Act-compliant stablecoins could boost US bank deposits

Patrick Witt, executive director of the White House's advisory committee on digital assets, stated that stablecoins compliant with the GENIUS Act could drive new capital into the U.S. banking system, regardless of the ongoing debate over stablecoin rewards and interest payments. Writing on X, he explained that immense global demand for the dollar would lead overseas investors to convert local currencies into dollar-backed stablecoins. This process, he argued, creates a net capital inflow as the funds naturally move into U.S. banks, thereby increasing their deposits.