BofA CEO Warns Interest-Bearing Stablecoins Could Pull $6T from Banks

Bank of America CEO Brian Moynihan expressed concern that interest-bearing stablecoins, functioning like money market mutual funds, could attract up to $6 trillion in deposits away from the US banking system. He argued this migration would reduce banks' capacity for lending, particularly impacting small and mid-sized businesses that rely heavily on bank loans. This discussion occurs amid stalled progress on US crypto legislation, including the CLARITY Act, where a key sticking point is whether stablecoin issuers should be allowed to offer yield. Banking groups echo Moynihan's concerns, warning that displaced funds will not be replaced by crypto companies offering FDIC-insured products. Meanwhile, Coinbase CEO Brian Armstrong stated the company might withdraw support for the CLARITY Act if it includes amendments banning stablecoin rewards.

(Source：Cointelegraph)