BOA CEO Stablecoin Warning: $6 Trillion Could Leave Banks

BOA CEO Stablecoin Warning as Senate Weighs Yield Restrictions

Bank of America’s leadership just dropped a bombshell prediction for the future of traditional banking in 2026. The BOA CEO stablecoin warning focuses on a truly massive number: as much as $6 trillion. That’s how much cash could walk out the door of commercial banks and move into digital stablecoins if Congress doesn't step in to limit interest-paying digital assets. Essentially, Moynihan is sounding the alarm that the "old way" of saving money is about to face its biggest competitor yet.

Source: X(formerly Twitter)

Speaking during a high-stakes earnings call on January 15, 2026, CEO Brian Moynihan highlighted a shift that would represent roughly 35% of all U.S. bank deposits. According to Moynihan, this isn't just a tech trend, it's a structural threat to the way Americans get loans for homes and small businesses.

The "Genie Out of the Bottle": Why Moynihan is Sounding the Alarm

The core of the BOA CEO stablecoin warning is the competition for "yield." For years, banks have functioned on a simple model: they take your deposits and use that money to fund loans. However, interest-bearing stablecoins behave more like money market funds.

Moynihan argued that if these digital dollars are allowed to pay high interest, the "genie will be out of the bottle." Because stablecoin reserves are typically parked in U.S. Treasuries rather than recycled into the economy via bank loans, the traditional credit system could face a permanent liquidity crunch. "If you take out deposits, banks won't be able to loan," Moynihan warned, noting that the cost of alternative "wholesale funding" would likely drive up mortgage and business loan rates for everyone.

The Senate Showdown: Why "Passive Yield" is the New Battleground

Moynihan’s warning couldn't have come at a more chaotic time. Right now, the Senate Banking Committee is in the middle of a massive debate over the 2026 crypto market structure bill, and one specific rule has everyone on edge. Lawmakers are essentially drawing a line in the sand that would ban "Passive Yield." If this goes through, you’d be legally blocked from earning interest just for having a stablecoin sitting in your wallet. Allow "Activity Rewards": Incentives for staking, providing liquidity, or governance would still be permitted.

This compromise has sparked a civil war in the industry. Coinbase CEO Brian Armstrong recently pulled his support for the bill, claiming it unfairly protects the "legacy revenue" of big banks like BOA at the expense of everyday consumers.

A National Security Risk?

The debate has even taken a turn toward national security. While the BOA CEO stablecoin warning focuses on economic stability, crypto advocates like the Blockchain Association argue that banning rewards will push users toward foreign digital currencies (CBDCs). They contend that a "weakened" digital dollar one that can't pay competitive interest—hands an advantage to global rivals just as the world’s financial plumbing moves on-chain.