Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Policy
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Trump’s crypto adviser rejects Jamie Dimon on
Policy
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Trump’s crypto adviser rejects Jamie Dimon on
Trump’s crypto adviser rejects Jamie Dimon on treating yield-bearing stablecoins like banks
For feedback or concerns regarding this content, please contact us at [email protected]
Trump’s crypto adviser rejects Jamie Dimon on treating yield-bearing stablecoins like banks
White House adviser Patrick Witt said yield-bearing stablecoins needn't to face bank rules because the Genius Act bars issuers from lending reserves.
By Olivier Acuna|Edited by Sheldon Reback
Updated Mar 4, 2026, 2:57 p.m. Published Mar 4, 2026, 1:16 p.m.
Make us preferred on Google
White House crypto adviser rejects JPMorgan CEO Dimon's stablecoin yields comments. (Tabrez Syed on Unsplash/Modified by CoinDesk)
What to know:
- A White House crypto adviser rejected JPMorgan CEO Jamie Dimon’s claim that stablecoin issuers paying interest must be regulated like banks.
- Patrick Witt argued that under the Genius Act, stablecoin issuers are barred from lending reserves, so their tokens should not be treated as bank deposits.
- Dimon maintained that platforms paying yield on stored balances effectively operate as banks and should face full bank-style oversight, while rewards tied only to transactions could be an acceptable compromise.
The White House’s crypto adviser pushed back on JPMorgan CEO Jamie Dimon’s assertion that stablecoin issuers who pay interest should be regulated like banks.
Stablecoins need not be treated like deposits because the Genius Act explicitly bars issuers from lending the reserves that back their tokens, Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, wrote in an X post.
Dimon said banks want stablecoin issuers that pay interest on customer balances to face the same rules as traditional lenders, sharpening the debate over U.S. crypto regulation.
He also addressed reported tensions with Coinbase CEO Brian Armstrong, who withdrew support for the proposed Clarity Act a day before the Senate Banking Committee was scheduled to vote on the legislation. Dimon argued there needs to be a line between rewards paid on transactions and interest paid on stored balances.
“Rewards are the same as interest,” Dimon said. “If you are going to be holding balances and paying interest, that’s the bank. You should be regulated by a bank.”
Banks would accept a compromise in which crypto platforms offer rewards tied to transactions, he said. But firms that function like deposit-taking institutions should meet the same standards as banks, including capital and liquidity rules, anti-money laundering controls and federal deposit insurance requirements.
“The deceit here is that it is not the paying of yield on a balance per se that necessitates bank-like regulations, but rather the lending out or rehypothecation of the dollars that make up the underlying balance,” Witt said. Rehypothecation occurs when banks use clients' collateral to support their own borrowing.
He also pointed to the Genius Act, which he said “explicitly forbids stablecoin issuers from doing the latter. Stablecoins ≠ Deposits.”
White HousePatrick WittJamie DimonStablecoinsYield
More For You
Pudgy Penguins: Challenging the Pokemon and Disney Legacy in the Global IP Race
CoinDesk Research looks into how Pudgy Penguins disrupts traditional toys market via a phygital model. With 2M+ units sold, they scale via global partnerships and events.
What to know:
- Disrupting a Stagnant Market: Pudgy Penguins is utilizing a "Negative CAC" model to challenge the traditional $31.7B licensed toy industry by treating physical merchandise as a profitable user acquisition tool rather than just a final product.
View Full Report
More For You
Trump urges passage of U.S. Clarity Act, attacks banks for 'undercutting' GENIUS
U.S. President Donald Trump said in a post on Truth Social that the banking industry is trying to undermine the stablecoin bill he signed into law last year.
What to know:
- U.S. President Donald Trump attacked banks in a Truth Social post, saying they were holding market structure legislation "hostage" over their opposition to stablecoin yield payouts.
- Trump urged speedy passage of the bill, saying it was important for the U.S. to remain at the forefront of crypto legislation.
- Negotiations are ongoing between the White House and crypto and banking industry representatives over the language in the bill.
Read full story
Latest Crypto News
Coinbase, Strategy lead crypto stocks higher as bitcoin spikes above $72,000
Bitcoin 'air pocket' above $72,000 could mean quick run to $80,000
CoinDesk 20 performance update: Solana (SOL) gains 5.6%, leading index higher
Ex-Binance communications lead joins stablecoin specialist KAST
Sui’s native stablecoin goes live with promise of Treasury yield going back to the network
Stablecoin giant Tether invests $50 million in sleep technology startup Eight Sleep
Top Stories
Morgan Stanley taps Coinbase and BNY for custody in proposed Bitcoin ETF
Bitcoin hits one-month high near $72,000 as haven demand rises
Kraken becomes first crypto company to secure Fed master account access
Ray Dalio says 'there is only one gold' as bitcoin outperforms gold during worst geopolitical crisis in years
Trump urges passage of U.S. Clarity Act, attacks banks for 'undercutting' GENIUS
JP Morgan CEO Jamie Dimon says stablecoin issuers paying interest should be regulated as banks
Market Opportunity
OFFICIAL TRUMP Price(TRUMP)
$3.424
$3.424$3.424
USD
OFFICIAL TRUMP (TRUMP) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
FCA komt in 2026 met aangepaste cryptoregels voor Britse markt
De Britse financiële waakhond, de FCA, komt in 2026 met nieuwe regels speciaal voor crypto bedrijven. Wat direct opvalt: de toezichthouder laat enkele klassieke financiële verplichtingen los om beter aan te sluiten op de snelle en grillige wereld van digitale activa. Tegelijkertijd wordt er extra nadruk gelegd op digitale beveiliging,... Het bericht FCA komt in 2026 met aangepaste cryptoregels voor Britse markt verscheen het eerst op Blockchain Stories.
Share
Coinstats2025/09/18 00:33
PBOC Sets Strongest Fix In 34 Months, Signaling Strategic Shift
The post PBOC Sets Strongest Fix In 34 Months, Signaling Strategic Shift appeared on BitcoinEthereumNews.com. Yuan Mid-Point Soars: PBOC Sets Strongest Fix In 34
Share
BitcoinEthereumNews2026/03/05 11:45
Fintech Is Leveling the Playing Field in Trading, Says Zak Westphal
The post Fintech Is Leveling the Playing Field in Trading, Says Zak Westphal appeared on BitcoinEthereumNews.com. The trading world was once divided into two groups: those with access to high-powered data and those without. As you might have guessed, it was the major institutions (like Wall Street) that had a monopoly on the tools, data access, and speed. This left retail traders fighting to keep up. This gap is closing rapidly, and the main reason is the introduction of new technology and platforms entering the fold. Zak Westphal has been at the forefront of this transformation. While Co-Founding StocksToTrade, he has been a big part of empowering everyday traders to gain access to the real-time information and algorithmic systems that have long provided Wall Street with its edge. We spoke with him about how fintech is reshaping the landscape and what it really means for retail traders today. Fintech has changed everything from banking to payments. In your opinion, what has been its greatest impact on the world of trading? For me, it’s all about access. When I began my trading career, institutions had a significant advantage, even more pronounced than it is now. They had direct feeds of data, algorithmic systems, and research teams monitoring information right around the clock. Retail traders, on the other hand, had slower information and pretty basic tools in comparison. Fintech has substantially changed the game. Today, a retail trader from home can access real-time market data, scan thousands of stocks in mere seconds, and utilize algorithmic tools that were once only available to hedge funds. I can’t think of a time when the access for everyday traders has been as accessible as it is today. That doesn’t mean the advantages are gone, because Wall Street still has resources that individuals simply can’t have. However, there is now an opportunity for everyday traders actually to compete. And that is a…
Share
BitcoinEthereumNews2025/09/18 17:14