Bank of America CEO Brian Moynihan has cautioned that the rise of stablecoins could potentially divert $6 trillion in deposits from the banking system, impacting lending capacity and increasing borrowing costs. Speaking at a Bank of America investor conference, Moynihan highlighted concerns that stablecoin-linked products offering yield-like returns could reduce traditional bank deposits, which are crucial for funding loans. Moynihan's comments come amid ongoing Senate debates over a crypto market structure bill, following the GENIUS Act's establishment of a federal framework for stablecoin issuers. The American Bankers Association has echoed these concerns, urging lawmakers to address what they see as "dangerous loopholes" in stablecoin legislation. Despite these warnings, some large banks, like JPMorgan, have downplayed the systemic risk posed by stablecoins, suggesting they will complement existing financial systems rather than replace them.