White House Crypto Advisor: JPMorgan CEO's Remarks Misleading, GENIUS Act Prohibits Stablecoin Lending and Rehypothecation

Techub News reported, according to The Block, White House digital assets advisor Patrick Witt refuted JPMorgan Chase CEO Jamie Dimon's comments on stablecoin yields. Dimon stated that platforms paying stablecoin yields should face bank-like regulation, as "holding balances and paying interest" constitutes banking. Witt responded on platform X that Dimon's claim was misleading, arguing that what truly requires bank-like regulation is lending or rehypothecation against the underlying dollar balances, and that the GENIUS Act explicitly prohibits stablecoin issuers from engaging in the latter. Therefore, stablecoin balances should not be equated to bank deposits.