BofA CEO Warns Stablecoin Yield Could Drain 35% of All US Bank Deposits

Key Takeaways

• Senators are preparing to vote on the CLARITY Act’s stablecoin yield provision, one of the most contested parts of the bill
• BofA’s Brian Moynihan warned that yield-bearing stablecoins could drain up to $6 trillion from bank deposits, while JPMorgan’s Jamie Dimon has emerged as another vocal critic
• Polymarket odds of the CLARITY Act passing in 2026 have slipped below 50%, showing growing uncertainty around the legislation

The CLARITY Act has reached the Senate floor. This brings one of the crypto industry’s most debated provisions under fresh scrutiny. Lawmakers are now weighing whether stablecoin issuers should be allowed to offer yield on digital dollar holdings. Supporters say this feature could accelerate adoption and bring new competition to financial services. As the vote moves forward, attention has returned to a warning issued by Bank of America CEO Brian Moynihan. He previously argued that yield-bearing stablecoins could reshape how consumers store money.

Also Read: Bitcoin Fell 18% Last Week & Today’s CPI & FOMC June 17 Will Decide What Comes Next

Why the CLARITY Act Stablecoin Yield Vote Will Decide If $6T Leaves US Banks Forever

The Senate’s consideration of the CLARITY Act marks a key moment for the digital asset industry. Among the most closely watched provisions is the treatment of stablecoin yield. This would allow certain issuers to pass returns on reserve assets back to token holders.

Supporters argue that yield-bearing stablecoins could give consumers access to returns on digital dollars while strengthening the competitiveness of US-based stablecoin issuers.

The debate has also drawn opposition from some of the largest names in traditional finance. JPMorgan CEO Jamie Dimon has repeatedly criticized yield-bearing stablecoins. Meanwhile, banking groups have lobbied lawmakers to restrict provisions they believe could encourage deposit flight. The American Bankers Association has also opposed the measure, arguing that allowing stablecoin issuers to offer yield could pull funds away from regulated banks.

Also Read: SpaceX IPO Targets $1.77T on June 12, but Morningstar Says It Is Worth Just $780B

Brian Moynihan’s Warning Comes Under The Spotlight

While the Senate’s vote is happening now, the banking industry’s concerns surfaced months ago. Bank of America CEO Brian Moynihan warned that allowing stablecoin issuers to offer yield could eventually pull as much as $6 trillion or about 35% of all bank deposits, out of the US banking system. The estimate, he said, was based on Treasury Department studies examining how consumers might respond if digital dollars began offering returns that directly compete with savings accounts. He added,

“If you take out deposits, they’re either not going to be able to loan, or they’re going to have to get wholesale funding, and that wholesale funding will come at a cost.”

The scale of that potential shift is significant. According to Federal Reserve data, US commercial banks currently hold about $18.6 trillion in deposits. This means Moynihan’s estimate represents nearly one-third of the system’s funding base. Banks rely on deposits to fund lending, and a large migration of funds into yield-bearing stablecoins could force institutions to replace those deposits with more expensive forms of financing.

This tension sits at the center of the current Senate debate. Supporters see innovation and consumer choice. Meanwhile, critics warn about the potential impact on the banking system. Amidst this, prediction market participants have become increasingly cautious. Polymarket odds for CLARITY Act passage in 2026 recently fell below 50%, down from more than 70% earlier this year.

Also Read: Hindenburg Omen Hit 3 Days Straight as BofA Flashes 70% Bear Signals & $2T Was Wiped