Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

How to get a $30,000 personal loan

July 13, 2025

What is a blend fund?

July 13, 2025

Vanguard, BlackRock deliver market plays for 2025’s second half

July 13, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Banking»Bank of America and US Bank ready to join stablecoin party
Banking

Bank of America and US Bank ready to join stablecoin party

June 13, 2025No Comments4 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Bank of America and US Bank ready to join stablecoin party
Share
Facebook Twitter LinkedIn Pinterest Email

If Congress goes all in on crypto, some of America’s top banks are ready to follow.

At an industry conference in New York this week, top executives at Bank of America , Fifth Third Bancorp and U.S. Bancorp all said they were open to working with stablecoins — cryptocurrencies whose value is tied to more traditional assets — and seemed confident that they’ll soon be in safe regulatory territory.

“We have to have it. The industry has to have it,” BofA’s Brian Moynihan, CEO of the country’s second-largest bank, said at the conference, which was hosted by Morgan Stanley. “We’ve not been quite sure how big it will be, but we have to be ready.”

The backdrop for that bullishness is the most crypto-friendly government the 16-year-old industry has ever seen. As the CEOs spoke, the U.S. Senate moved closer to passing the GENIUS Act — standing for the Guiding and Establishing National Innovation for U.S. Stablecoins Act — a bipartisan bill to establish a clear framework for regulating the products.

This new environment marks a stark turnaround from the Joe Biden era, when regulators openly discouraged investing in digital assets and rejected many applications for new crypto products. Former Securities and Exchange Commission Chair Gary Gensler, for example, once called bitcoin “primarily a speculative, volatile asset that’s also used for illicit activity.”

That atmosphere, combined with a lack of crypto legislation during the Biden years, deterred many banks from jumping into the market. But on Wednesday, the Senate voted to end debate on the GENIUS Act, and a final vote is expected next week.

See also  McKernan tapped for Treasury post, CFPB future unclear

Meanwhile, the House is mulling over the STABLE Act — short for the Stablecoin Transparency and Accountability for a Better Ledger Economy Act — which covers similar ground as the Senate measure and also enjoys bipartisan support. The two bills may eventually be reconciled into one.

As the political winds have shifted, a number of bank leaders appear to have lost their reservations about crypto. Bank of America has taken part in discussions with several other large banks — including JPMorganChase, Citigroup and Wells Fargo — about the possibility of issuing a joint stablecoin, according to the Wall Street Journal.

On Wednesday, Moynihan credited the changing regulatory scene for his bank’s evolution.

“The problem before was, it wasn’t clear we were allowed to do it under the banking regulations, and there was a lot of mystery about that,” Moynihan said. “If they get the GENIUS Act or the STABLE Act or anything like that passed … that clarity will allow us to figure out whether there’s really a business proposition.”

Bryan Preston, the chief financial officer of the $213 billion-asset Fifth Third, took a similarly proactive stance, saying stablecoins could be used to make international payments instantaneously, or to move collateral instantly from market to market.

“We’re always trying to look ahead,” Preston said at the conference. “We think that there are some interesting places where stablecoin can really create some efficiencies in the commerce space.”

Gunjan Kedia, CEO of the $676 billion-asset U.S. Bancorp, pointed to her own bank’s experience to underline how much the new regulatory environment has changed the crypto outlook. Four years ago, she noted, U.S. Bancorp introduced a crypto custody product — but in the Biden years, it went nowhere.

See also  Fannie Mae, Freddie Mac regulator to Powell: cut or quit

“The product didn’t really take off because the regulatory regime at that point was very uncertain for large institutional investors,” Kedia said on Wednesday. “That product is back, and we are very able to provide it.”

The CEO also said U.S. Bancorp is studying how it could help use stablecoin for payments, but much of that will depend on how the new regulations shape up.

“We are watching it, and there’s a lot to be sorted out before the role we play solidifies in our mind,” Kedia said.

And it’s not just American banks getting in on the action. The French bank Societe Generale is planning to introduce a U.S. dollar-based stablecoin, called USD CoinVertible, in July.

To be sure, not every bank is rushing into the crypto space. John Turner Jr., the CEO of Birmingham, Alabama-based Regions Financial, which has $160 billion of assets, showed a clear reluctance to jump in.

“Never say never, but I’ve not been a great fan of crypto,” Turner said Tuesday at the conference. “And so I think we’ll be a follower there, for sure, not a leader.”

But for the most part, bank leaders struck a markedly more assertive tone about digital currencies than they had in the past. In Moynihan’s view, embracing stablecoin is a matter of necessity.

“At the end of the day, if people use it as a transactional account, we have to be ready to have those transactional deposits stay within our franchise,” Moynihan said, “or else you’ll see a major migration of deposits outside the industry.”

—Colin McNamara contributed to this article.

See also  Soaring student loan delinquencies signal risks to banks

Source link

America Bank join party Ready stablecoin
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleBest no-personal-guarantee business credit cards
Next Article Trump CFPB cuts reviewed by Fed inspector general

Related Posts

The Trump administration should dispose of the FFIEC manual

July 13, 2025

HUD dissolves policies created by PAVE task force

July 12, 2025

Louisiana, Connecticut pass earned wage access laws | PaymentsSource

July 12, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Former Fed Vice Chair Stanley Fischer Dies at 81

June 2, 2025

CFPB extends compliance date for small business lending rule

June 17, 2025

Wise fined $4.2 million for multistate compliance lapses | PaymentsSource

July 10, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

How to get a $30,000 personal loan

July 13, 2025

What is a blend fund?

July 13, 2025

Vanguard, BlackRock deliver market plays for 2025’s second half

July 13, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.