BofA CEO Warns Stablecoin Interest Could Trigger $6T Bank Deposit Exodus

VADODARA, January 15, 2026 — Bank of America CEO Brian Moynihan has issued a stark warning that allowing interest payments on stablecoins could precipitate an outflow of approximately $6 trillion from U.S. commercial bank deposits into the stablecoin market, representing 30-35% of total deposits. This latest crypto news highlights a critical fault line in the ongoing debate over the U.S. crypto market structure bill (CLARITY), with profound implications for liquidity distribution and financial system stability.

Market Context & Background

This warning emerges against a backdrop of escalating tension between traditional banking and decentralized finance. According to the official SEC filing history on digital assets, regulatory frameworks have struggled to keep pace with innovation, creating structural arbitrage opportunities. Stablecoins, particularly those pegged to the U.S. dollar, have evolved from simple payment tokens to sophisticated yield-bearing instruments, mirroring the growth trajectory of money market funds in the 1980s. Market structure suggests this evolution threatens to create a significant Fair Value Gap (FVG) between traditional deposit yields and crypto-native returns, potentially triggering a liquidity grab from legacy systems. Related developments include recent analyses of Bitcoin's push toward $100,000 and institutional ETH deposits signaling sell pressure, both reflecting broader market volatility amid regulatory uncertainty.

What Happened?

In a statement to investors, Bank of America CEO Brian Moynihan articulated that stablecoins are structurally analogous to money market mutual funds, with reserves invested in short-term financial instruments like U.S. Treasuries rather than being deployed for bank loans. This configuration, he noted, keeps capital outside the traditional banking system, shrinking the deposit base that banks rely on for lending to households and businesses. The $6 trillion estimate—derived from internal bank analytics—represents a direct challenge to current legislative efforts, particularly the CLARITY Act, which seeks to define regulatory parameters for digital assets. On-chain data indicates that stablecoin supply has grown exponentially, with total market capitalization approaching $200 billion, creating a substantial parallel financial ecosystem.

Technical Analysis & Price Action

From a quantitative perspective, the warning introduces a macro liquidity variable that could influence crypto price action. Bitcoin currently trades at $96,839, testing key resistance near the psychological $100,000 level. The Relative Strength Index (RSI) on daily charts shows neutral momentum, while the 50-day moving average provides dynamic support around $92,000. If stablecoins absorb significant bank deposits, the resulting capital inflow could create a Gamma Squeeze scenario, pushing Bitcoin toward new all-time highs. Conversely, regulatory crackdowns could trigger a sell-off. Bullish Invalidation Level: A break below the $90,000 support, indicating failed momentum. Bearish Invalidation Level: A sustained move above $102,000, confirming breakout strength. Volume Profile analysis reveals accumulation zones between $94,000 and $96,000, suggesting institutional interest.

By The Numbers

Why It Matters

This development matters because it exposes a fundamental liquidity reallocation risk. For institutions, a $6 trillion shift could compress net interest margins and reduce lending capacity, potentially slowing economic growth. For retail crypto participants, it represents both opportunity and peril—higher yields on stablecoins versus bank deposits, but increased regulatory scrutiny that could destabilize markets. The structural similarity to money market funds, as noted by Moynihan, suggests that stablecoins could become a systemic component of the financial ecosystem, akin to the role of Ethereum's EIP-4844 blobs in scaling Layer 2 solutions. Historical cycles indicate that such shifts often precede regulatory intervention, as seen with the Dodd-Frank Act post-2008.

Community Sentiment

Market analysts on X/Twitter are divided. Bulls argue that yield-bearing stablecoins democratize access to Treasury returns, while bears warn of regulatory backlash. One prominent quant noted, "The $6 trillion figure feels inflated—it assumes perfect capital mobility, ignoring behavioral inertia." Others point to recent events like AI trading competitions testing DeFi efficiency as evidence of crypto's maturation, reducing reliance on traditional banks. Sentiment analysis of social media data shows neutral-to-cautious positioning, with fear of regulatory overhang tempering greed-driven rallies.

Price Prediction / Future Outlook

Bullish Case: If regulatory clarity emerges favoring stablecoin interest, capital inflows could propel Bitcoin past $100,000, with altcoins benefiting from increased on-chain activity. Ethereum's transition to a proof-of-stake consensus via the Merge could see renewed interest as a yield-generating asset. Target: Bitcoin at $110,000 within 6 months.Bearish Case: If regulators impose strict limits, a liquidity drain from crypto could trigger a correction. Bitcoin might retest support at $85,000, with stablecoin market capitalization contracting by 20-30%. Target: Bitcoin at $82,000 (Fibonacci 0.618 retracement level) within 3 months.