Wall Street Mounts Pushback on Trillion-Dollar Stablecoin Boom
- Major banks including Bank of America are pressing regulators to curb yield-bearing stablecoins, warning they could pull trillions of dollars out of traditional bank deposits and destabilize lending capacity (Bloomberg).
- The clash comes even as institutional adoption grows; Standard Chartered and Citi project the stablecoin market could reach $2 trillion by 2028.
- The stablecoin complex has already seen roughly a $10 billion contraction between May and July 2026 — its largest pullback since 2022.