Brian Moynihan, CEO of Bank of America (BAC), announced on Wednesday that the bank is poised to explore stablecoins once significant crypto legislation is enacted.
Future Of Stablecoins In Focus
Speaking at a Morgan Stanley conference in New York, Moynihan emphasized the bank’s readiness to engage with digital currencies, stating, “We’re working with the industry… but the problem before was it wasn’t clear we were allowed to do it under the banking regulations.”
Moynihan noted that the bank has been considering launching its own stablecoin since February, but will wait for the passage of key legislative measures before proceeding.
“If they get the Genius Act or the Stable Act passed, along with the markets infrastructure enablement piece, that will help us determine whether there’s a viable business opportunity in stablecoins,” he added.
Despite these forward-looking statements, Moynihan also addressed challenges facing the bank, predicting a more than 20% decline in investment banking revenue for the second quarter compared to the previous year. However, he anticipates a moderate increase in trading revenue during the same period.
Bipartisan Support Grows For Crypto Legislation
In recent days, Wall Street has begun to recognize the potential of stablecoins to transform digital payments and broader financial systems. The Genius Act, which outlines how bank holding companies and other entities can issue stablecoins, has been reintroduced in the Senate and could see final passage as early as next week, according to Yahoo.
Notably, bipartisan support has emerged for several amendments to the bill. These include a proposal to prevent the president and his family from profiting from stablecoin ventures while in office, and another from Senator John Hickenlooper (D-Colo.) aimed at prohibiting interest payments to stablecoin customers to protect the competitive standing of community banks.
Senate Majority Leader John Thune has temporarily stalled votes on these amendments, complicating the legislative process. Simultaneously, the Clarity Act, a broader piece of legislation intended to regulate the digital asset market, has yet to be brought to a vote in the House.
President Trump has previously expressed a desire for both bills to be expedited as part of his vision to position the US as the “crypto capital of the planet.” During the first-ever White House crypto summit in March, Trump indicated his hope that stablecoin legislation could reach his desk before Congress’s recess on August 5.
In a related development, the recent public listing of Circle (CRCL), a prominent stablecoin issuer, on the New York Stock Exchange has generated excitement among investors. Circle’s stock more than doubled on its first trading day, fueling optimism that the IPO market may be on the verge of a rebound.
Featured image from DALL-E, chart from TradingView.com