The CEO of Bank of America warns that approximately $6 trillion in deposits (equivalent to 30-35% of total bank deposits in the US) could shift to stablecoins.

🔷 This shift would reduce the funding available for traditional banking systems, forcing banks to seek wholesale funding at higher costs.

🔷 CEO Moynihan believes that the structure of stablecoins is similar to money market funds, where reserves are held in short-term instruments like government bonds rather than being reinvested into economic loans.

🔷 The debate centers around the new crypto market structure bill by Senator Tim Scott, which includes a clause banning service providers from paying interest to users solely for holding stablecoins.

🔷 The bill also raises concerns about expanding financial oversight and could impact (rewards) programs on exchanges.

🔷 Coinbase has officially withdrawn support for this bill, arguing that new regulations will "destroy" the benefits associated with stablecoins.

🔷 The bill review meeting has been postponed due to over 70 amendments still being submitted and intense lobbying from both the banking industry and the crypto sector.#WeekendMarketPredictions #PrivacyCoinsDiverge $BTC $SOL