Svmuu News: Patrick Witt, Executive Director of the U.S. President’s Advisory Council on Digital Assets, stated that compliant stablecoins operating within the framework of the GENIUS Act will not only fail to erode bank deposits but will actually drive global capital inflows into the U.S. banking system. Addressing concerns within the traditional banking sector that “interest-bearing stablecoins could lead to capital outflows,” Witt pointed out that global demand for the U.S. dollar is enormous. When foreign users exchange local currencies for stablecoins issued by U.S. providers, they are essentially injecting net new capital into the U.S. financial system. He further emphasized that the GENIUS Act explicitly prohibits stablecoin issuers from lending funds or engaging in rehypothecation, which fundamentally distinguishes them from traditional banking operations. Currently, the debate over the nature of stablecoin rewards and interest-based incentives remains a major obstacle to crypto market regulatory legislation such as the Clarity Act. (The Block)