Bank of America CEO warns interest-bearing stablecoins may draw up to $6 trillion

Bank of America CEO Brian Moynihan warned that interest-bearing stablecoins could pull as much as $6 trillion out of the US banking system, saying large-scale deposit migration would reduce banks' lending capacity and push borrowing costs higher. The comments surfaced after a crypto investor shared a screenshot of Bank of America’s earnings call transcript on X.

Moynihan pointed to Treasury-cited studies suggesting a significant share of bank deposits could move into stablecoins if issuers are allowed to pay interest, and said such products would function more like "a money market mutual fund concept," with funds held in cash, central bank reserves or short-term Treasurys rather than deployed for lending.

He warned this would move deposits off bank balance sheets and shrink credit availability, particularly for small and mid-sized businesses that rely more heavily on bank loans than capital markets. The Community Bankers Council echoed those concerns in a letter to lawmakers, warning that as much as $6.6 trillion in bank deposits could be at risk and writing: "If billions are displaced from community bank lending, small businesses, farmers, students, and home buyers in towns like ours will suffer.

Key Topics

Crypto, Brian Moynihan, Stablecoins, Clarity Act, Senate Banking Committee, Community Bankers Council