Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said GENIUS-compliant stablecoins could bring new capital into US banks instead of draining deposits.

He posted on X that foreigners exchanging local currency for stablecoins from a US-based issuer would create net new capital entering the US banking system.

Banking groups and the American Bankers Association warned that yield-bearing stablecoins could pull deposits and called for equal regulatory standards.