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Bank of America says up to $6 trillion could move into stablecoins
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The risk depends on whether stablecoins are allowed to pay interest
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Lawmakers are debating limits on stablecoin rewards
Bank of America CEO Brian Moynihan warned that as much as $6 trillion in U.S. bank deposits could shift into stablecoins if Congress allows them to pay interest.
Speaking during an earnings call, Moynihan said Treasury Department studies suggest that between 30% and 35% of U.S. commercial bank deposits could migrate into stablecoins under permissive rules. He argued that interest-bearing stablecoins resemble money market funds, where funds are parked in short-term assets like U.S. Treasurys rather than recycled into bank lending.
According to Moynihan, a large outflow of deposits would limit banks’ ability to issue loans unless they rely more heavily on wholesale funding, which typically comes at a higher cost. This, he said, could ripple through the broader economy.
The comments come as lawmakers debate a Senate crypto market structure bill that would prohibit stablecoin issuers and platforms from paying interest on idle balances. The draft legislation still allows rewards tied to activity such as staking, liquidity provision, or collateral use, while banning passive yield.
The bill faces heavy lobbying from both the banking and crypto industries. Dozens of amendments have been filed, and disagreements remain over stablecoin rewards, regulatory authority, and privacy protections.
Opposition has also grown outside traditional banking circles. Some lawmakers and researchers have raised concerns that the bill could significantly expand government surveillance powers over digital asset transactions. Amid the controversy, Coinbase publicly withdrew its support, and the Senate Banking Committee postponed its planned markup.
