BoA CEO warns trillions could shift to yield-bearing stablecoins if allowed to pay interest

Bank of America CEO Brian Moynihan warned that a Treasury Department study suggests up to $6 trillion of U.S. bank deposits could migrate into stablecoins if interest-bearing stablecoins aren’t restricted, potentially shrinking banks’ deposit bases and raising wholesale funding costs. The report comes as lawmakers rush to finalize a crypto bill that would ban interest on stablecoins unless tied to activities like staking or liquidity provision, amid lobbying from banks and crypto firms and concerns about financial surveillance.