Bank of America CEO Brian Moynihan said as much as $6 trillion in US bank deposits could move into stablecoins if Congress allows issuers to pay interest. Speaking on an earnings call, Moynihan cited Treasury Department analysis suggesting the shift could represent roughly one-third of total commercial bank deposits.
He argued that interest-bearing stablecoins could function similarly to money market funds, with reserves invested in short-term government securities rather than recycled into bank lending. Such a migration, he said, would reduce the deposit base banks rely on to fund loans, potentially increasing reliance on higher-cost wholesale funding.
The comments come as lawmakers debate stablecoin provisions in a proposed crypto market structure bill. The latest draft would prohibit yield on passive stablecoin balances while permitting activity-based rewards tied to functions such as staking or liquidity provision, underscoring growing regulatory focus on the systemic impact of digital dollar instruments.
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