US Banks Warn Interest-Paying Stablecoins Threaten Lending, Citing Deposit Flight

On 16 January 2026, Bank of America CEO Brian Moynihan warned that authorizing yield on stablecoins could drain deposits from US banks and erode lending capacity. According to studies cited by the US Treasury, potential outflows could reach several trillion dollars, with small and mid-sized businesses most exposed as credit tightens while the Senate debates the CLARITY Act.