Patrick Witt, executive director of the President's Advisory Council on Digital Assets, stated that compliant stablecoins, within the framework of the GENIUS Act, will not weaken bank deposits but will instead drive global capital inflows into the US banking system. Addressing concerns from traditional banking circles that interest-bearing stablecoins could lead to capital flight, Witt pointed out that global demand for the US dollar is enormous. When overseas users exchange their local currencies for stablecoins issued by US issuers, they are essentially injecting net new capital into the US financial system. He further emphasized that the GENIUS Act explicitly prohibits stablecoin issuers from lending or re-collateralizing funds, a fundamental difference from the operating model of traditional banks. Currently, the debate surrounding stablecoin rewards versus interest-based incentives remains a major obstacle to legislation governing the crypto market structure, such as the Clarity Act. (The Block)