Bank of America Stays Cautious on Stablecoins Despite Other Banks’ Exploration

Bank of America’s Chairman and CEO Brian Moynihan voiced continued caution regarding stablecoins, citing the absence of regulatory clarity and unproven business value as key reasons for the bank’s slow approach during the company’s earnings call.

In brief

• The bank’s CEO, Moynihan, downplayed client interest in stablecoins, citing unclear regulation and unproven business value.
• Rivals like Citi and JPMorgan are moving ahead with exploratory stablecoin initiatives.
• Ongoing Congressional gridlock over crypto legislation continues to cloud the sector’s near-term outlook.

Moynihan explicitly referenced the unsettled regulatory landscape, stating, “That’s still going on as we speak,” acknowledging the current lack of client demand, “The business cases for it as incremental value are still to be proven, frankly… We are not seeing… clients knocking on the door…” Despite extensive work done on stablecoins, Moynihan stressed that adoption hinges on demonstration of market need and definitive legal frameworks.

This stance contrasts sharply with Moynihan’s comments from February, during which he vowed, “If they make that legal, we will go into that business,” indicating a readiness if fully permitted.

Meanwhile, other major financial institutions appear more open to experimenting with stablecoins. Citigroup CEO Jane Fraser announced active exploration of a Citi-branded stablecoin for cross-border payments during their earnings call.

JPMorgan CEO Jamie Dimon confirmed engagement with stablecoins, if limited, while Morgan Stanley continues to closely monitor developments. Reports suggest leading banks like Citi, JPMorgan, Wells Fargo, and Bank of America previously discussed potentially jointly launching a dollar-pegged token.

In limbo?

The outlook for the stablecoin market remains uncertain due to persistent regulatory limbo in the United States. Although President Trump offered a hopeful intervention this week after several bills faced defeat due to concerns over CBDC provisions, opponents like Rep. Marjorie Taylor Greene continue to object.

Hopes for forward progress were derailed last week during the House’s Crypto Week due to internal Republican disagreements. A procedural vote to advance three critical bills failed on Tuesday, largely because hardline Republicans opposed the GENIUS Act for not prohibiting a U.S. stablecoin-issuing entity.

The bills addressed stablecoin regulations (GENIUS Act), broader crypto frameworks (CLARITY Act), and opposition to a potential U.S. Central Bank Digital Currency (Anti-CBDC Act). However, momentum appears to be resurgent, with potential for another procedural vote Thursday, intended to incorporate robust anti-CBDC protections guaranteed by key holdout group leaders like Rep. Andy Harris.