{"id":93178,"date":"2026-01-15T15:41:54","date_gmt":"2026-01-15T12:41:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=93178"},"modified":"2026-01-15T15:47:47","modified_gmt":"2026-01-15T12:47:47","slug":"bank-of-america-chief-warns-up-to-6trn-could-flee-banks-into-stablecoins","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bank-of-america-chief-warns-up-to-6trn-could-flee-banks-into-stablecoins\/","title":{"rendered":"Bank of America Chief Flags Risk of $6 Trillion Moving from Banks into Stablecoins"},"content":{"rendered":"<p>Bank of America chief Brian Moynihan <a href=\"https:\/\/event.choruscall.com\/mediaframe\/webcast.html?webcastid=oSYRjGvj\">said<\/a> as much as $6trn could flow out of the US banking system into <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>\u2014roughly 30\u201335% of total deposits nationwide.<\/p>\n<p>The projection is based on a US Treasury study. Earlier, the Bank Policy Institute <a href=\"https:\/\/forklog.com\/en\/news\/us-banks-risk-6-6trn-deposit-flight-under-the-genius-act\">cited<\/a> the same report, warning of potential capital outflows of $6.6trn.<\/p>\n<p>Moynihan likened \u201cstablecoins\u201d to money-market funds: their reserves are typically parked in short-term Treasuries rather than used to make loans. The upshot, he argued, is liquidity leaving the traditional sector, depriving banks of resources to lend to businesses and households.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIf you pull deposits out, they either won\u2019t be able to make loans, or they\u2019ll have to raise wholesale funding, and that funding will have its own cost,\u201d said the Bank of America chief.<\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Legislative debate<\/h2>\n<p>US lawmakers are trying to regulate the issue. The latest Clarity Act draft introduced by Senator Tim Scott bars digital-asset providers from paying interest or any income \u201csimply for the fact of holding\u201d a stablecoin. <\/p>\n<p>However, the bill permits rewards for active participation in the ecosystem, with exceptions for income from:<\/p>\n<ul class=\"wp-block-list\">\n<li>providing liquidity;<\/li>\n<li>participating in protocol governance;<\/li>\n<li><a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a>;<\/li>\n<li>other actions that keep the network functioning.<\/li>\n<\/ul>\n<p>The Senate Banking Committee had planned to take up the bill on January 15, but the session was postponed. Scott cited the need for further discussion.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I\u2019ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.<\/p>\n<p>As we take a brief pause before moving to a markup, this market structure bill reflects months of\u2026<\/p>\n<p>\u2014 Senator Tim Scott (@SenatorTimScott) <a href=\"https:\/\/twitter.com\/SenatorTimScott\/status\/2011629977217728952?ref_src=twsrc%5Etfw\">January 15, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI\u2019ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues; everyone remains at the table working in good faith,\u201d he wrote. <\/em><\/p>\n<\/blockquote>\n<p>The senator did not name a new date.<\/p>\n<p>Earlier, the Senate Agriculture Committee pushed its markup to January 27.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe have made progress in discussions and are engaged in a constructive dialogue, but we need additional time to resolve the remaining contentious issues and to secure the broad support necessary for such a law,\u201d explained Republican John Boozman. <\/em><\/p>\n<\/blockquote>\n<p>The House of Representatives passed its version in July. The process now requires sign-off from two Senate committees: Banking (overseeing the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>) and Agriculture (responsible for the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>). Only then will the bill go to a floor vote.<\/p>\n<h2 class=\"wp-block-heading\">Crypto industry pushback<\/h2>\n<p>The latest draft has sparked arguments across the crypto community, with many opposing limits on paying returns on stablecoins. <\/p>\n<p>Coinbase was the first to withdraw support. Its CEO Brian Armstrong said the updated proposal is \u201csignificantly worse than the status quo.\u201d <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can\u2019t support the bill as written.<\/p>\n<p>There are too many issues, including:<\/p>\n<p>\u2014 A defacto ban on tokenized equities<br \/>\u2014 DeFi prohibitions, giving the government unlimited access to your financial\u2026<\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a href=\"https:\/\/twitter.com\/brian_armstrong\/status\/2011545247105355865?ref_src=twsrc%5Etfw\">January 14, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Among the \u201cproblematic\u201d provisions, he highlighted: <\/p>\n<ul class=\"wp-block-list\">\n<li>a de facto ban on <a href=\"https:\/\/forklog.com\/en\/news\/what-are-tokenised-assets\">tokenised<\/a> equities;<\/li>\n<li>severe curbs on the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">DeFi<\/a> sector that would paralyse its development;<\/li>\n<li>violations of users\u2019 rights and threats to privacy;<\/li>\n<li>weakening the CFTC, whose regulatory model is best suited to innovative assets;<\/li>\n<li>eliminating the ability to earn passive income from stablecoins.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe would rather have no law at all than this one. Hopefully we can all arrive at a better solution,\u201d Armstrong wrote. <\/em><\/p>\n<\/blockquote>\n<p>He was <a href=\"https:\/\/x.com\/RasterlyRock\/status\/2011580054049079361\">backed<\/a> by Bitwise head of research Ryan Rasmussen. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIf the banking lobby manages to get a ban on stablecoin yields, it will be direct proof that the Senate works for the interests of banks, not the people. [\u2026] Any support for this provision by elected representatives is indefensible,\u201d<\/em> <a href=\"https:\/\/x.com\/RyanSAdams\/status\/2011434430129439212\"><em>added<\/em><\/a><em> Bankless podcast host Ryan Sean Adams. <\/em><\/p>\n<\/blockquote>\n<p>Crypto lawyer Jake Chervinsky urged against premature conclusions. He is confident the industry will have time to propose amendments while the bill is being refined.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ \ud83d\udea8 Market structure goes to markup tomorrow!<\/p>\n<p>This is a historic moment for crypto in Washington. Senate Banking has done extraordinary work putting together a strong product.<\/p>\n<p>There\u2019s a lot to like in the new draft, but also some key issues left to address. Let&#8217;s discuss \ud83e\uddf5<\/p>\n<p>\u2014 Jake Chervinsky (@jchervinsky) <a href=\"https:\/\/twitter.com\/jchervinsky\/status\/2011464323693158650?ref_src=twsrc%5Etfw\">January 14, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe text will change a lot before it becomes law. Let\u2019s hope for the best,\u201d he wrote. <\/em><\/p>\n<\/blockquote>\n<p>Some experts endorsed the current Clarity Act draft. a16z Crypto managing partner Chris Dixon <a href=\"https:\/\/x.com\/cdixon\/status\/2011594543867764843\">stressed<\/a> that the community \u201cneeds clear rules of the road.\u201d <\/p>\n<p>The investor called the document the result of five years of joint work by business and government, including both parties in Congress and Donald Trump\u2019s team. In Dixon\u2019s view, the initiative would safeguard decentralisation and offer fair conditions for entrepreneurs.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAt its core, the bill does exactly these things. It isn\u2019t perfect; changes are needed. But now is the time to advance Clarity\u2014especially if we want the United States to remain the best place to build the future of cryptocurrencies,\u201d Dixon concluded.<\/em><\/p>\n<\/blockquote>\n<p>Coin Center executive director Peter Van Valkenburgh also <a href=\"https:\/\/x.com\/valkenburgh\/status\/2011557024539004934\">said<\/a> he is \u201coptimistic about the current market-structure bill draft.\u201d <\/p>\n<p>In January, JPMorgan Chase CFO Jeremy Barnum <a href=\"https:\/\/forklog.com\/en\/news\/jpmorgan-opposes-stablecoin-based-parallel-banking-system\">warned<\/a> about the risks of yield-bearing stablecoins. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America chief Brian Moynihan said as much as $6trn could flow out of US banks into stablecoins.<\/p>\n","protected":false},"author":1,"featured_media":93179,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Bank of America\u2019s Brian Moynihan warns up to $6trn could shift into stablecoins.","creation_source":"ai_translated","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[36,807,26],"class_list":["post-93178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-regulation","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"222","promo_type":"1","layout_type":"1","short_excerpt":"Bank of America\u2019s Brian Moynihan warns up to $6trn could shift into stablecoins.","is_update":"0","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=93178"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93178\/revisions"}],"predecessor-version":[{"id":93181,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/93178\/revisions\/93181"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/93179"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=93178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=93178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=93178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}