BofA CEO: Allowing interest on stablecoins could drain $6T from bank deposits

Bank of America CEO Brian Moynihan has warned that allowing interest payments on stablecoins could lead to an outflow of approximately $6 trillion from the banking system into the stablecoin market. This figure represents about 30-35% of total deposits in U.S. commercial banks. Moynihan explained that stablecoins are structurally similar to money market mutual funds, with reserves invested in short-term financial instruments like U.S. Treasurys rather than being used for bank loans. He noted that this structure keeps funds outside the traditional banking system, which would shrink the deposit base banks rely on for lending to households and businesses. The issue of permitting interest on stablecoins is currently a major point of contention between the banking and crypto industries amid discussions over the U.S. crypto market structure bill (CLARITY).