Bank of America (NYSE:BAC) is joining other major US banks in calling for limits on stablecoin interest payments and urging Congress to act as the Clarity Act stalls. The push on stablecoin rules highlights how a large US bank is trying to shape the regulatory terms of competition with newer financial players. The push to restrict stablecoin interest payments sits at the intersection of regulation and Bank of America’s core funding model. By arguing that high yielding stablecoin accounts could drain deposits from the banking system, Bank of America is effectively trying to protect lower cost, insured deposits that support lending.
If regulators or Congress adopt tighter rules, that could limit how aggressively crypto platforms compete for those balances. If the Clarity Act continues to stall, that would mean a longer period of uncertainty in which non bank players and traditional banks such as JPMorgan and Citigroup keep lobbying for their preferred outcome. The firm’s regulatory stance on stablecoins aligns with the narrative focus on net interest income, because protecting deposits and pricing power feeds directly into interest revenue and expense discipline. If regulators move in a different direction than Bank of America is advocating, increased competition from stablecoin platforms could pressure deposit costs, which would challenge the earnings power narrative.
⚠️ Prolonged uncertainty around stablecoin rules could keep regulatory risk elevated for Bank of America and large bank peers. ⚠️ If stablecoin providers retain the ability to pay interest freely, competition for funding could increase, which may pressure deposit pricing and net interest margins.
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