Bank of America CEO Brian Moynihan has warned that trillions of dollars could move out of the traditional banking system and into stablecoins, underscoring growing friction between banks and the digital asset sector.
According to Moynihan, as much as $6 trillion currently held in U.S. bank accounts could shift into stablecoins. That figure represents roughly 30% to 35% of all commercial bank deposits in the country. He raised this concern during the bank’s earnings call on Wednesday, noting that such an outcome would depend heavily on how stablecoins are regulated.
Moynihan said the estimate was based on research from the U.S. Treasury Department and is tied to ongoing debates in Congress, particularly around whether stablecoin issuers should be allowed to offer interest or yield to holders.
Banks are especially concerned that yield-paying stablecoins could accelerate deposit withdrawals. From their perspective, these products could function like bank accounts by offering returns, but without being subject to the same regulatory oversight. Moynihan added that many stablecoin models look more like money market funds than traditional deposits, since their reserves are typically held in short-term assets such as U.S. Treasurys rather than being used to finance loans to households and businesses.
He warned that if deposits continue to leave banks, their ability to lend across the economy could be weakened. Without customer deposits, banks would need to rely more on wholesale funding, which is generally more expensive and could raise borrowing costs overall.
In response to these concerns, Senate Banking Committee Chair Tim Scott introduced a proposal on January 9 that would ban digital asset service providers from offering interest or yield on stablecoins. The proposal has gained urgency as lawmakers face tight deadlines, with both banking and crypto industry groups pushing for numerous changes ahead of a committee vote this week.
The debate has also been complicated by recent disclosures that President Donald Trump earned hundreds of millions of dollars through crypto-related businesses linked to his family, raising unresolved questions around ethics and regulation.
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