Bank of America's CEO, Brian Moynihan, has warned that delays in implementing stablecoin regulations could allow tech rivals to gain an advantage in the banking industry. Speaking at a Morgan Stanley event in New York, Moynihan revealed that the bank is "working with the industry" on launching a stablecoin, pending regulatory approval.
*Stablecoin Regulations: A Key Hurdle*
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) is currently making its way through Congress, aiming to establish a broad federal rulebook for stablecoins. Moynihan emphasized that regulatory clarity is essential for Bank of America to move forward with its stablecoin plans ¹.
*Bank of America's Stablecoin Plans*
Moynihan stated that the bank has been building its own solutions internally and is working with the industry to develop a stablecoin. However, the bank is unsure how popular stablecoins will be and wants to be prepared for potential changes in the market ².
*Potential Impact on Banking Industry*
If stablecoins become widely used for transactions, banks risk losing deposits to external payment systems. Moynihan warned that "you'll see a major migration of deposits outside the industry" if banks don't adapt to the changing landscape.
*Industry Collaboration*
Major banks, including JPMorgan Chase, Wells Fargo, Citigroup, and PNC, have discussed collaborating on a stablecoin project, potentially creating a Zelle-like stablecoin network ¹.
*Key Takeaways*
- *Regulatory Clarity*: Essential for Bank of America to launch a stablecoin
- *Industry Collaboration*: Major banks exploring joint stablecoin projects
- *Adaptation*: Banks must prepare for potential changes in the market to avoid losing deposits to external payment systems.
