Regulatory Approval Could Pave the Way for Bank of America’s USD-Pegged Stablecoin

Bank of America (BofA) is prepared to launch a USD-pegged stablecoin if U.S. lawmakers pass comprehensive regulatory legislation, CEO Brian Moynihan stated at the Economic Club of Washington, D.C.

CEO: Legislation Key to Stablecoin Launch

Moynihan emphasized that the move is contingent on regulatory approval, signaling that the bank is poised to enter the digital asset space once legal clarity is established.

He said,

“It’s pretty clear that there’s going to be a stablecoin, which is going to be fully dollar-backed. If they make that legal, we will go into that business.”

The CEO hinted at the possibility of offering dollar-backed tokens tied to customer deposit accounts but did not elaborate on any specific product plans.

Stablecoins, digital currencies pegged to assets like the U.S. dollar, have long been a topic of regulatory debate. Despite the dominance of private issuers such as Tether (USDT) and USD Coin (USDC), policymakers have hesitated to fully embrace them. 

Stablecoin Regulation Gains Momentum

However, regulatory progress under the Trump administration may facilitate their integration into traditional banking. Several bills aiming to regulate stablecoins are currently under consideration, including the Lummis-Gillibrand Payment Stablecoin Act, the Clarity for Payment Stablecoins Act of 2024, and the GENIUS stablecoin bill. In February 2025, Rep. Maxine Waters, a ranking member of the U.S. House Financial Services Committee, urged bipartisan support for stablecoin regulation, favoring the bill drafted by former committee chairman Patrick McHenry in 2024.

Senator Bill Hagerty’s Clarity for Payment Stablecoins Act of 2024 builds upon McHenry’s bill by allowing stablecoin issuers with under $10 billion in market capitalization to be regulated at the state level rather than federally. This provision aims to ease entry barriers for smaller players while maintaining oversight for larger issuers.

Banks Poised to Enter Stablecoin Market

Regulators have increasingly acknowledged the role stablecoins can play in financial markets. Federal Reserve Governor Christopher Waller voiced support for allowing banks to issue stablecoins, describing them as a potential game-changer for cross-border payments. 

At a February 12 conference, Waller claimed, 

“I am seeing a lot of new, private sector entrants looking to find ways to support the use of stablecoins for retail payments.”  

With their near-instant settlement capabilities and lower transaction costs, stablecoins are seen as a viable solution for remittances and international commerce. If banks like BoA enter the stablecoin market, it could signal a significant shift in mainstream financial institutions’ approach to digital assets, providing customers with a seamless bridge between traditional banking and blockchain technology.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.