BofA Is Looking for ‘Legal Clarity,’ as It Explores Stablecoin Initiatives, CEO Says

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Executives from several big banks, including Bank of America, said this week they're working on stablecoin plans as Congress considers the GENIUS Act

Key Takeaways

• Bank of America CEO Brian Moynihan said Wednesday the company is looking for "legal clarity" as it explores stablecoin initiatives.

• Executives from other big banks, including JPMorgan Chase and Citi, also said they're working on stablecoin plans as Congress considers a bill that would allow private companies to issue their own.

• Stablecoins are cryptocurrencies with a value pegged to another currency or financial asset, such as the U.S. dollar.
  

Bank of America (BAC) CEO Brian Moynihan on Wednesday said the bank is exploring stablecoin intiatives, as Congress considers a bill that would allow private companies to issue their own.

The BofA chief emphasized the need for additional guidelines, which could come as soon as this week if the House passes the GENIUS Act. President Donald Trump expressed confidence that the bill could clear a procedural hurdle soon, which lifted shares of crypto-related stocks in recent trading.

There needs to be "legal clarity," Moynihan told analysts on the company's earnings call Wednesday, according to a transcript provided by AlphaSense.

Stablecoins are cryptocurrencies with a value pegged to another currency or financial asset, such as the U.S. dollar. They’ve been a hot topic during big banks’ earnings calls this week, with Morgan Stanley (MS) CFO Sharon Yeshaya saying Wednesday the company is “actively discussing” the use of stablecoins.

“We're looking both at the landscape and the uses and the potential uses for our own client base. But it really is a little early to tell,” said Yeshaya, according to a transcript of the bank's earnings call from AlphaSense.

JPMorgan Chase (JPM) CEO Jamie Dimon said Tuesday the bank is planning to “be involved” with stablecoins, and Citigroup (C) CEO Jane Fraser told analysts that the bank is “looking at the issuance of a Citi stablecoin.”

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