Bank of America Plans To Launch Stablecoin Once U.S. Legislation is Passed, CEO Says.

Bank of America (BoA) CEO Brian Moynihan confirmed this week that the company is ready to enter the stablecoin market once U.S. lawmakers provide regulatory approval. Speaking at the Economic Club of Washington, D.C., Moynihan said, “If they make that legal, we will go into that business.” He compared stablecoins to money market funds or traditional bank accounts, emphasizing their potential role in financial transactions.

Stablecoins, digital currencies pegged to the U.S. dollar or other assets, have grown into a $232 billion market despite lacking federal regulation. Tether’s USDT leads the sector with a $142 billion market cap, followed by Circle’s USDC at $56 billion. While financial giants like JP Morgan have already launched their own blockchain-based payment solutions—such as JPM Coin—BoA has held back, waiting for a clear legal framework.

Regulatory efforts are gaining momentum, particularly under the Trump administration. Senate Banking Committee Chairman Tim Scott has committed to passing the GENIUS Act, a bill focused on stablecoin oversight, within the administration’s first 100 days. A broader market structure bill addressing cryptocurrency regulations is also in the works. White House AI and Crypto Czar David Sacks recently outlined the administration’s stance, confirming stablecoin legislation as a priority.

Several bills are under consideration, including the Clarity for Payment Stablecoins Act of 2024, which would allow smaller stablecoin issuers—those with less than $10 billion in market cap—to be regulated at the state level. Federal Reserve Governor Christopher Waller has spoken in favor of stablecoins, saying they could modernize payments and streamline international transactions.

Source: FINANCE.YAHOO