Bitcoin surged this week, climbing close to the $100,000 mark as investors worry about the future of the U.S. dollar. The rally comes after a sharp decline in late 2025 and growing optimism around U.S. crypto policy in 2026.
As bitcoin climbed, Bank of America CEO Brian Moynihan issued a serious warning. He said new crypto legislation could lead to as much as $6 trillion in bank deposits leaving the traditional banking system.
Moynihan pointed to stablecoins as the main risk. These crypto tokens are usually tied to the U.S. dollar and are increasingly used as payment and savings tools. He warned that large deposit losses would limit banks’ ability to lend and force them to seek more costly funding.
Other banking leaders share similar concerns. JPMorgan CFO Jeremy Barnum said stablecoins could create a parallel banking system without the safety rules that protect depositors.
The warning comes as U.S. lawmakers debate a major crypto market bill. The proposal could allow stablecoin issuers to offer yield-like returns, which critics say would compete directly with bank savings accounts.
Some politicians have spoken out against the plan. Senator Richard Blumenthal warned that stablecoins lack the protections that saved insured bank deposits during past failures.
Meanwhile, crypto companies are divided. Coinbase pulled its support for the bill, saying it favors traditional banks, while still calling for fair and clear rules for digital assets.
Despite the debate, bitcoin continues to rise. Analysts say regulatory clarity and macroeconomic uncertainty are pushing investors toward bitcoin, which some now view as a hedge similar to gold rather than a high-risk asset.
Follow on Google News
