Bank of America has cautioned that the rise of stablecoins could lead to a significant shift in U.S. bank deposits, potentially draining up to $6 trillion from the banking system. During a recent earnings call, CEO Brian Moynihan highlighted concerns that stablecoin adoption might reduce banks' lending capacity and increase borrowing costs. Moynihan noted that while Bank of America is prepared to adapt, the broader financial system could face challenges as deposits move into stablecoin environments. Moynihan explained that stablecoins, which may be backed by short-term assets like bank deposits and U.S. Treasurys, could alter funding dynamics, particularly affecting small and medium-sized businesses reliant on bank credit. He warned that banks might need to resort to more expensive wholesale funding, raising borrowing costs for consumers and businesses. The issue is seen as an industrywide policy challenge, with banking trade groups actively engaging lawmakers as stablecoin legislation progresses in Congress.