By Michael Scott
Bank of America chief Brian Moynihan is bullish on President Donald Trump’s administration, predicting the financial industry will likely adopt crypto payments if regulators approve.
During a Tuesday, January 21 interview with CNBC’s Andrew Sorkin, Moynihan indicated that the US banking industry will likely dive into crypto-based payments if requisite regulations are in place.
The CEO of the US’s second-largest bank by assets is optimistic that the finance industry’s approach to digital assets could change under President Trump, ceiling his enthusiasm for cryptocurrencies.
US Banks to Embrace Crypto Payments
Speaking in a side chat interview during the World Economic Forum (WEF) in Davos, Switzerland, Moynihan observed that if the rules are in place to make the integration clear, it could entice the banking system to onboard the transactional side of cryptocurrency,
The pro-crypto stance by the veteran Bank of America chief emerges as the US banks appear to largely avoid allowing customers to utilize digital assets for retail transactions. This contrasts with the reality that their wealth management and institutional trading have actively participated in the spot Bitcoin exchange-traded funds (ETFs).
Moynihan’s views contrast with the pronouncement by other industry leaders, including JPMorgan Chase head Jamie Dimon. The latter profiled Bitcoin as the preferred currency for fraudsters and criminals.
Moynihan observed that Visa, Apple Pay, and Mastercard have made typical payments possible, a feat that crypto could replicate as an alternative form of payment. The executive admitted that Bank of America had secured hundreds of patents on the blockchain and was thus aware of how to enter the field.
The Bank of America CEO overlooked addressing the crypto role as an investment and store of value, indicating such a separate question.
Entry into Crypto Markets
Circle chief executive Jeremy Allaire holds a view comparable to Moynihan, anticipating President Trump’s issuance of groundbreaking executive orders. Such are likely to transform the interaction of traditional banks with digital assets.
Allaire believes the crypto market is on the brink of a transformative shift possible through the overhaul of the Standard Accounting Bulletin (SAB 121). The rules issued by the Securities and Exchange Commission (SEC) mandated firms holding clients’ crypto assets to record such as liabilities. The directive attracted criticism from listed banks, who termed SAB 121 both burdensome and discouraging the entities from using crypto custody services.
Reflecting on 2024 Q4 shows former president Biden vetoed the resolution by lawmakers to repeal the SAB 121. While the move sparked controversy, Trump’s entry is a reprieve for the crypto industry.
Allaire statement emerges as the crypto community anticipates pro-crypto executive orders that will ease crypto trade and investments offered to high-net-worth clients. As such, clients maintain digital assets in portfolios, which would encourage institutional adoption and be a catalyst for altcoins’ price appreciation.
Allaire’s view is significant, given that his role is to steer the Circle. This USDC stablecoin issuer ranks second behind Tether (USDT) and the eighth-largest crypto in market value per CoinGecko data. This dominant market position for USDC adds credibility to Allaire’s bullish insights regarding potential regulatory changes.
Will Circle’s USDC Dominate Under Trump Administration
A recent disclosure by Treasury Secretary Scott Bessent ruled out reasons for the government to establish the central bank digital currency (CBDC). The stance yields a significant advantage to Circle’s USDC in garnering institutional trust, particularly given its US ties and regulatory approval, unlike Tether (USDT).
The anti-CBDC stance by the Treasury Secretary endorses Trump’s declaration to prohibit the digital-US dollar, thus an implicit hint of preferring private stablecoin solutions.
With Trump projected to sign an executive order establishing a crypto council, Circle is set to have a stronger relationship with the US-based banks and regulators. The council will have the mandate to prioritize the industry’s policies. Primarily, Circle could develop more partnerships with traditional financial institutions (TradFi), particularly as the no-CBD stance becomes clearer.
Why This Matters
The bold outlook by Moynihan is critical given the widespread prediction that crypto payments will take off under the Donald Trump administration. This enthusiasm emerging from a large financial institution head solidifies the expected momentum for crypto during Trump’s second stint in the White House.
Per Allaire’s admission, the pro-crypto developments signal the start of a golden opportunity for investors to identify promising altcoins. Investing in such ventures before institutional money flows will enable them to reap substantial returns as the prices surge.
Despite Trump’s attempts to rally the digital assets industry, recent involvements in meme coin exploits leave the crypto executives. Both TRUMP and MELANIA’s rollout could fuel criticism of eroding trust in the regulatory agenda they anticipated Trump would establish.