🟡 BofA CEO Warns Up to $6 Trillion Could Flow to Interest-Paying Stablecoins

Bank of America CEO Brian Moynihan cautioned that if stablecoins were allowed to pay interest or yield, as much as $6 trillion — roughly 30 %–35 % of U.S. commercial bank deposits — could shift out of the traditional banking system and into stablecoin products. He raised these concerns amid current U.S. Senate discussions on stablecoin regulation and the potential impact on bank deposits, lending capacity, and credit availability.

Key Facts:

💼 $6 trillion risk: Treasury-referenced studies suggest a massive potential outflow of deposits if interest-bearing stablecoins are permitted.

🪙 Stablecoin yields debate: Ongoing legislative talks could ban passive interest on stablecoin holdings while allowing activity-based rewards like staking or liquidity provision.

📉 Banking impact: Moynihan said such a migration could shrink bank deposits and reduce lending capacity, especially to small and medium-sized businesses.

🏛️ Regulatory context: The U.S. Senate Banking Committee is negotiating bill language on how stablecoins can pay yields or rewards without undermining the banking system.

Expert Insight:

Moynihan’s warning highlights how yield-paying digital assets could compete with traditional banking deposits — potentially reshaping where consumer funds are held and how banks operate — and why regulators are considering rules to manage this shift.

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