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BAC, USB & Fifth Third Open to Stablecoins Amid Regulatory Shift
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Key Takeaways
BAC, USB and FITB express interest in stablecoins amid shifting U.S. regulatory sentiment.
GENIUS and STABLE acts aim to set reserve rules, ban algorithmic coins and clarify oversight.
Executives cite transaction speed, deposit retention, and payment efficiency as key benefits.
At an industry conference in New York last week, senior executives of Bank of America (BAC - Free Report) , Fifth Third Bancorp (FITB - Free Report) and U.S. Bancorp (USB - Free Report) stated that they are open to adopting stablecoins as they anticipate favorable regulations to develop.
Recent Regulatory Developments for Stablecoins
U.S. regulators are rapidly advancing their efforts to regulate payment stablecoins, with two major bipartisan bills introduced in early 2025: the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) and the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act). Both aim to establish a clear legal framework for dollar-denominated stablecoins, enhance client protection and ensure the United States maintains its monetary superiority in digital finance.
The GENIUS Act, introduced in February 2025, after a public draft was released in October 2024, defines payment stablecoins as digital assets for payment or settlement that are pegged to a fixed value, require one-to-one reserves, and prohibit algorithmic stablecoins. It explicitly prevents them from being classified as securities and sets distinct regulatory limits—federal oversight for issuers with more than $10 billion in assets, and state regulation for smaller ones. It also mandates monthly reserve audits and anti-money laundering (AML) compliance.
Just days later, the STABLE Act was unveiled in the House and introduced formally in March 2025. It proposes a more centralized regulatory structure, giving federal agencies ultimate authority even over state-approved issuers. It is similar to the GENIUS Act in its reserve requirements and prohibition on algorithmic stablecoins, but adds a two-year moratorium on such models.
Both bills build upon earlier legislative efforts, including the 2023 McHenry Bill and the 2024 Lummis-Gillibrand proposal, reflecting the rising urgency in Washington to bring stablecoins under formal regulation.
Why Are BAC & USB Bullish on Stablecoins?
The optimism for stablecoins stems from the most crypto-favorable U.S. administration the industry has encountered in 16 years. The U.S. Senate is advancing the GENIUS Act, with a final vote expected later this week. Moreover, the House is reviewing the STABLE Act. Eventually, both bills could be combined into a single piece of legislation.
Given the shifting political dynamics, several banking executives seem to have let go of their earlier skepticism toward crypto. According to the Wall Street Journal, Bank of America is engaged in talks with other major institutions about the potential launch of a joint stablecoin.
Brian Moynihan, CEO of Bank of America, stated, “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.”
“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, or else you'll see a major migration of deposits outside the industry," Moynihan further stated.
Bryan Preston, CFO of Fifth Third, stated, “stablecoins could be used to make international payments instantaneously, or to move collateral instantly from market to market. We think that there are some interesting places where stablecoin can really create some efficiencies in the commerce space.”
Gunjan Kedia, CEO of U.S. Bancorp, referred to her banking experience to indicate how much the new regulatory environment has changed the crypto outlook. She also stated that the bank is observing how it could help use stablecoin for payments, but much of that will depend on how the new regulations shape up.
If stablecoins continue to gain traction, large global banks are set to benefit the most, given their solid liquidity positions. As stablecoins offer yield opportunities, traditional banks may need to increase deposit rates to stay competitive. While banks like Bank of America, Fifth Third, and U.S. Bancorp are well-positioned to deal with the changes, many smaller regional banks could face greater challenges.
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BAC, USB & Fifth Third Open to Stablecoins Amid Regulatory Shift
Key Takeaways
At an industry conference in New York last week, senior executives of Bank of America (BAC - Free Report) , Fifth Third Bancorp (FITB - Free Report) and U.S. Bancorp (USB - Free Report) stated that they are open to adopting stablecoins as they anticipate favorable regulations to develop.
Recent Regulatory Developments for Stablecoins
U.S. regulators are rapidly advancing their efforts to regulate payment stablecoins, with two major bipartisan bills introduced in early 2025: the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) and the STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act). Both aim to establish a clear legal framework for dollar-denominated stablecoins, enhance client protection and ensure the United States maintains its monetary superiority in digital finance.
The GENIUS Act, introduced in February 2025, after a public draft was released in October 2024, defines payment stablecoins as digital assets for payment or settlement that are pegged to a fixed value, require one-to-one reserves, and prohibit algorithmic stablecoins. It explicitly prevents them from being classified as securities and sets distinct regulatory limits—federal oversight for issuers with more than $10 billion in assets, and state regulation for smaller ones. It also mandates monthly reserve audits and anti-money laundering (AML) compliance.
Just days later, the STABLE Act was unveiled in the House and introduced formally in March 2025. It proposes a more centralized regulatory structure, giving federal agencies ultimate authority even over state-approved issuers. It is similar to the GENIUS Act in its reserve requirements and prohibition on algorithmic stablecoins, but adds a two-year moratorium on such models.
Both bills build upon earlier legislative efforts, including the 2023 McHenry Bill and the 2024 Lummis-Gillibrand proposal, reflecting the rising urgency in Washington to bring stablecoins under formal regulation.
Why Are BAC & USB Bullish on Stablecoins?
The optimism for stablecoins stems from the most crypto-favorable U.S. administration the industry has encountered in 16 years. The U.S. Senate is advancing the GENIUS Act, with a final vote expected later this week. Moreover, the House is reviewing the STABLE Act. Eventually, both bills could be combined into a single piece of legislation.
Given the shifting political dynamics, several banking executives seem to have let go of their earlier skepticism toward crypto. According to the Wall Street Journal, Bank of America is engaged in talks with other major institutions about the potential launch of a joint stablecoin.
Brian Moynihan, CEO of Bank of America, stated, “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.”
“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, or else you'll see a major migration of deposits outside the industry," Moynihan further stated.
Bryan Preston, CFO of Fifth Third, stated, “stablecoins could be used to make international payments instantaneously, or to move collateral instantly from market to market. We think that there are some interesting places where stablecoin can really create some efficiencies in the commerce space.”
Gunjan Kedia, CEO of U.S. Bancorp, referred to her banking experience to indicate how much the new regulatory environment has changed the crypto outlook. She also stated that the bank is observing how it could help use stablecoin for payments, but much of that will depend on how the new regulations shape up.
If stablecoins continue to gain traction, large global banks are set to benefit the most, given their solid liquidity positions. As stablecoins offer yield opportunities, traditional banks may need to increase deposit rates to stay competitive. While banks like Bank of America, Fifth Third, and U.S. Bancorp are well-positioned to deal with the changes, many smaller regional banks could face greater challenges.