March 4 News: U.S. stablecoin regulation disputes have heated up again. Patrick Witt, Executive Director of the White House President’s Advisory Council on Digital Assets, recently responded publicly to Jamie Dimon’s criticism of stablecoin yield mechanisms, stating that his view is “misleading” and emphasizing that stablecoin yields are not the same as bank deposit interest in terms of regulatory logic.
Previously, JPMorgan Chase CEO Jamie Dimon told CNBC that if a stablecoin platform offers yields or interest on user balances, it essentially functions like banking and should be subject to the same regulatory requirements as traditional banks. He pointed out that the U.S. banking system must comply with strict rules, including federal deposit insurance, anti-money laundering regulations, and capital adequacy, and that stablecoin issuers offering yields should be under a similar framework.
In response, Patrick Witt later clarified on social media that this view confuses key issues. He noted that the real regulatory concern should be lending or re-hypothecation of customer funds, not simply providing yields on balances. “The misleading part is equating the yield mechanism itself with banking business,” Witt said. The U.S. GENIUS Act explicitly restricts stablecoin issuers from re-hypothecating or lending reserve funds, so stablecoin balances should not be considered as bank deposits.
The controversy over stablecoin yield mechanisms is also a significant reason for the slow legislative progress on U.S. crypto market structure. Although the GENIUS Act passed in 2025 established a federal regulatory framework for payment stablecoins, disagreements remain between the banking industry and the crypto sector over yield models. Banks worry that allowing stablecoins to offer yields could attract large amounts of funds away from traditional banking systems.
Meanwhile, industry insiders believe that compliant stablecoins can not only improve payment efficiency but also become an important infrastructure for digital financial products. Some policy discussions have proposed compromises, such as rewarding only transaction activity rather than paying yields on account balances.
Currently, the White House continues to organize closed-door meetings with bank executives and digital asset industry representatives, seeking a balanced approach between stablecoin yield models and banking regulation. However, sources say that despite frequent discussions, no clear consensus has yet been reached.
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