Bank of America CEO Warns Stablecoins Could Drain $6 Trillion

Brian Moynihan, CEO of Bank of America, warned during a Q4 2025 results conference that interest-bearing stablecoins could drain up to $6 trillion from the U.S. banking system. This potential shift represents 30% to 35% of total commercial bank deposits, which Moynihan argues would reduce lending capacity and force banks to utilize more expensive wholesale funding, ultimately raising costs for small businesses and consumers.

These warnings follow a January 5 letter from the American Bankers Association urging the U.S. Senate to close legislative loopholes that permit stablecoin issuers to offer yield-like incentives. In response, Senate Banking Committee Chair Tim Scott introduced a crypto market structure bill intended to ban interest on idle stablecoin balances.

Legislative progress stalled after Coinbase Global Inc. withdrew its support for the bill. The cryptocurrency exchange argued that the proposed provisions would eliminate stablecoin rewards. Despite the friction with Coinbase, Tim Scott stated that participants remain engaged in the legislative process.