Bank of America is lobbying Congress to pass legislation that would give banks an edge in the growing stablecoin market.
The goal: prevent non-bank companies from freely issuing digital dollar-pegged tokens.
The $284 billion financial giant is working with industry groups like the American Bankers Association and the Bank Policy Institute, according to The Block. These efforts are part of a broader push to create a fully reserved, 1:1-backed “Bank of America coin.”
If successful, the campaign could sideline stablecoin projects led by non-bank players like Coinbase, Circle, Tether, Amazon, Meta, and PayPal.
The Stablecoin Power Struggle
Stablecoins like USDC (by Circle) and USDT (by Tether) dominate the market, with market caps of $60 billion and $144 billion, respectively. Bank of America wants in—but only under rules that favor traditional banks.
While Circle is lobbying to protect its own position, Bank of America argues that its offering would be more transparent and fully compliant with U.S. law. That narrative takes aim at competitors like Tether, which has faced regulatory scrutiny in the past.
However, Bank of America’s own history with regulators is far from clean. The bank has been fined for issues including underpaying FDIC insurance, double-charging customers, violating the Home Mortgage Disclosure Act, and a $16 billion DoJ settlement over financial fraud.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bank-of-americas-plan-could-shut-down-coinbase-and-tether-stablecoins/