Bank of America CEO warns up to $6 trillion in deposits could shift to stablecoins if allowed to pay interest

Bank of America CEO Brian Moynihan stated during an earnings call that up to $6 trillion in U.S. commercial bank deposits—about 30% to 35% of the total—could migrate to stablecoins if these digital assets are allowed to pay interest. Moynihan noted that stablecoin structures resemble money market funds, holding reserves outside the traditional banking system, which would shrink the deposit base banks use for lending. This concern is central to a legislative dispute surrounding a proposed crypto market structure bill from Senate Banking Committee Chair Tim Scott, which currently prohibits digital asset service providers from paying interest on idle stablecoin balances, though it allows rewards for activity like staking. The bill's progress has been complicated by numerous amendments, lobbying from both crypto and banking sectors, and the recent withdrawal of support from Coinbase CEO Brian Armstrong over the stablecoin rewards provision. Following these developments, the scheduled committee markup was postponed.

(Source：The Block)