White House advisor: Stablecoin yields pose no threat to banks

PANews reported on February 14th, citing Cryptopolitan, that White House crypto policy advisor Patrick Witt stated that the ability of crypto platforms to offer stablecoin yields does not pose a fundamental threat to the US banking industry, and that banks and crypto companies can coexist and benefit each other. Witt stated that stablecoin yields should not be seen as a threat to banks, as both sectors have opportunities for innovation and the provision of similar services. He pointed out that banks already possess the tools and regulatory pathways to launch similar products, and can apply for digital asset business licenses through the Office of the Comptroller of the Currency; many banks are transitioning in this direction. He believes that stablecoins can help banks expand their customer base and develop new financial products, and should be seen as a competitive advantage rather than a competitor.

U.S. Treasury Secretary Scott Bessent warned that crypto legislation could be shelved or overturned if political power in Congress changes hands. Observers point out that with the election season approaching, lawmakers may shift their focus to campaigning, and the current legislative window may not remain open forever. Witt stated that the controversy surrounding stablecoin yields has been exaggerated, and he remains optimistic about reaching a consensus.