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Bank of America (BAC+0.13%) is poised to enter the stablecoin market, contingent upon the passage of favorable legislation by U.S. lawmakers, according to CEO Brian Moynihan. Speaking at the Economic Club of Washington, D.C., Moynihan stated, “If they make that legal, we will go into that business,” according to Decrypt.
Moynihan expressed confidence in the emergence of a U.S. dollar-backed stablecoin, likening its function to that of money market funds or bank accounts. He emphasized that the bank’s involvement hinges on Congress passing the necessary legislation, which has been suggested to occur within the first 100 days of President Donald Trump’s administration. “It’s pretty clear there’s going to be a stablecoin, which is going to be fully dollar-backed,” Moynihan said, highlighting the potential for a “Bank of America coin” to operate similarly to foreign currency, reported CoinDesk.
The Trump administration has indicated support for clearer regulatory guidelines in the crypto space, which could intensify competition among Wall Street banks, according to Decrypt.
In response to the shifting regulatory environment, other financial institutions are also exploring opportunities in the digital asset space. Charles Schwab (SCHW-0.49%), for instance, has recently appointed a head of digital assets as part of its exploration into the sector, reported CoinDesk.
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