Bank of America CEO Says US Banks Will Embrace Crypto Payments with Clear Regulations

Highlights:

• Bank of America CEO sees crypto payments as a new payment method, not a threat.
• Moynihan emphasizes clear regulations for crypto payments to encourage banks’ involvement in crypto.
• Bank of America holds blockchain patents, signaling readiness for crypto industry entry.

In an interview with CNBC at the World Economic Forum in Davos, Bank of America CEO Brian Moynihan stated that U.S. banks would adopt crypto payments if regulators allow. He referred to cryptocurrencies as another payment method, similar to Visa or debit cards. Moynihan emphasized the need for clear regulations to facilitate crypto payments. His comments have sparked optimism, especially as the crypto market anticipates regulatory changes under the new SEC Chair.

He said: 

“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.”

Moynihan mentioned that the bank already manages most money transfers digitally, with both consumers and companies utilizing digital methods. When asked if he viewed crypto, including Bitcoin, as a threat to the US dollar, he replied that he saw it as another payment option. He compared it to existing methods like Visa, Mastercard, debit cards, and Apple Pay.

🚨BREAKING🚨

THE $1.62 TRILLION BANK OF AMERICA
CEO SAYS THE FINANCIAL INDUSTRY
IS READY FOR CRYPTO PAYMENTS IF
REGULATORS GIVES APPROVAL.

TRUMP EFFECT IS HERE 🔥 pic.twitter.com/xMtP82q3Tr

— Ash Crypto (@Ashcryptoreal) January 21, 2025

The CEO mentioned that Bank of America holds multiple blockchain patents, signaling its readiness to enter the crypto industry. However, he refrained from discussing cryptocurrencies as an investment. While traditional financial institutions have shown interest by purchasing spot crypto exchange-traded funds (ETFs), their commercial banking divisions have distanced themselves from retail crypto users. Many crypto community members have interpreted Moynihan’s comments as a positive signal for the industry’s future.

“I think if it becomes regulatory okay, which it wasn’t before. That’s the issue, you will see the banking system enter. We have hundreds of patents on blockchain already,” he stated.

Biden Administration’s “Operation Choke Point 2.0” Complicates Crypto Adoption

U.S. banks have been hesitant to work with crypto companies. This is due to regulatory uncertainty and concerns over the risks linked to crypto assets. The situation has become more complex since the Biden administration. It reportedly launched a campaign to prevent banks from offering crypto-related services. This effort is commonly referred to as “Operation Choke Point 2.0.”

The SEC’s Staff Accounting Bulletin (SAB) 121 was a significant policy affecting the situation. This rule required banks to categorize customer-held crypto as liabilities on their balance sheets. It created hurdles for banks to offer crypto custody services, making many institutions hesitate or avoid pursuing crypto-related projects. Consequently, numerous US financial institutions have reduced or suspended their crypto initiatives. 

Circle CEO Claims Trump Administration Will Approve Crypto Trading for Banks

In a Reuters report, Circle CEO Jeremy Allaire said Trump will announce the long-awaited executive orders immediately after his inauguration. He believes Trump’s new policies will allow banks to offer crypto trading services, enabling clients to invest in and hold digital assets.

🚨Breaking: Trump set to sign an executive order easing bank ownership of digital assets, says Circle CEO.#RWA season is officially here! 🚀 pic.twitter.com/uAumlIzTXi

— Real World Asset Watchlist (@RWAwatchlist_) January 21, 2025

This action could potentially dismantle Operation Chokepoint 2.0. However, as Trump’s initial executive orders did not address crypto, there is uncertainty about the administration’s future plans. The outcome will depend on Trump’s next executive orders, determining whether statements from the Bank of America CEO and Allaire come to fruition.

Meanwhile, Fox Business journalist Eleanor Terret reported that two executive orders, one to establish a crypto council and the other to ban the creation of a Central Bank Digital Currency (CBDC), are awaiting Trump’s signature. 

🚨NEW: In addition to signing an executive order establishing a crypto council, #crypto policy leaders are also expecting Trump to sign an EO banning the creation of a CBDC. Unclear when exactly those EOs may be signed. https://t.co/MlpZD9AYcE

— Eleanor Terrett (@EleanorTerrett) January 21, 2025