Haciyev Reşit 
Bank of America CEO Brian Moynihan issued a striking warning regarding the stablecoin regulations currently on the agenda in the United States. According to Moynihan, if stablecoins are allowed to pay interest or yield, a significant portion of bank deposits could shift into these digital assets. Such a migration could weaken banks’ funding structures and negatively impact their lending capacity. Therefore, these regulations have the potential to create serious consequences not only for the crypto market but also for the traditional banking system and overall financial stability.
A Striking Statement from the Bank of America CEO
Speaking to analysts during the company’s earnings call on Wednesday, Brian Moynihan drew attention to a study conducted by the U.S. Treasury Department. According to this study, if Congress does not restrict interest-bearing stablecoins, up to $6 trillion in bank deposits could flow into stablecoins. This amount represents approximately 30–35% of total deposits held by U.S. commercial banks. Moynihan emphasized that a shift of this magnitude would directly affect banks’ ability to extend credit.
According to Moynihan, stablecoin models resemble money market funds. Stablecoin reserves are typically held in short-term U.S. Treasury securities rather than being channeled into bank lending. This causes funds to remain outside the traditional banking system. Such a scenario could put pressure on both bank profitability and the financing provided to the real economy.
Senate Bill and the Interest Debate
At the center of these concerns is a crypto market structure draft released on January 9 by Senate Banking Committee Chairman Tim Scott. The draft includes provisions that prohibit paying passive interest or yield simply for holding stablecoins. However, it does not take a completely restrictive approach. Exceptions are allowed for rewards earned through activities such as staking, liquidity provision, or collateral-based mechanisms. This creates a clear distinction between “interest on idle balances” and “activity-based returns.”
Negotiations around the bill have been marked by intense lobbying efforts. The submission of more than 70 proposed amendments ahead of the committee’s review clearly highlights the conflict of interests between the banking and crypto sectors. Amid these debates, Coinbase CEO Brian Armstrong announced that they withdrew their support, stating that the draft could effectively eliminate stablecoin rewards. According to Armstrong, the current text could suppress innovation in the sector.
Assessment
Bank of America’s warning shows that stablecoin regulations will directly affect not only the crypto market but also the traditional banking system. While interest-bearing stablecoins have the potential to weaken banks’ deposit bases, regulatory efforts in the Senate aim to limit this impact. In the coming period, stablecoin legislation will be a key determinant for both financial stability and the future of the crypto sector.
Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.