U.S. Bank Awaits Legal Clarity for Stablecoin Launch Amid Regulatory Shifts

The U.S. Bank is planning to launch a stablecoin, a type of cryptocurrency designed to maintain a stable value, typically pegged to a reserve asset such as the U.S. dollar. The bank is awaiting legal clarity before proceeding with the launch. This move comes as the regulatory landscape for digital assets in the United States is evolving, with several legislative efforts underway to provide a clearer framework for the issuance and regulation of stablecoins and other digital assets.

The U.S. Bank's decision to enter the stablecoin market reflects a broader trend among traditional financial institutions to explore digital currencies. Stablecoins, in particular, have gained attention for their potential to facilitate faster and more efficient cross-border payments, as well as to provide a stable store of value in the volatile cryptocurrency market. However, the lack of clear regulatory guidelines has been a significant barrier to widespread adoption and innovation in this space.

Bank of America CEO Brian Moynihan stated that the bank is preparing to launch a stablecoin. Investors can expect Bank of America to take action in the cryptocurrency field, but Moynihan did not provide a specific timeline. Moynihan said, "As the second largest bank in the United States, Bank of America believes that both the industry and itself will take action. We have done a lot of work and are still trying to figure out the scale of stablecoins because the scale of fund flows in certain areas is not large. Bank of America is trying to understand customer demand and will introduce a stablecoin at the appropriate time, possibly in collaboration with other institutions. The bank is still awaiting legal clarity, which is also why progress is slower than some investors expected."

The U.S. Bank is not alone in its wait for legal clarity. Other major financial institutions, including Morgan Stanley, have also expressed interest in launching stablecoins but have been cautious due to the regulatory uncertainty. Morgan Stanley CFO Sharon Yeshaya stated that they are closely monitoring the development of stablecoins. "We are examining the market as well as the potential uses of stablecoins for our customer base, but it is still early days."

The U.S. Congress is currently considering several bills aimed at providing a comprehensive regulatory framework for digital assets. One such bill, the Digital Asset Market Clarity Act of 2025, seeks to divide primary regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This legislation aims to address years of regulatory ambiguity that have stifled innovation and left market participants navigating a fragmented and unclear regulatory landscape.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is another key piece of legislation that focuses specifically on stablecoins. The GENIUS Act addresses the issuance and custody of payment stablecoins and has passed the Senate with bipartisan support. This act, along with the CLARITY Act, is expected to be considered as part of the House's planned "Crypto Week," which will also include legislation creating restrictions on central bank digital currencies (CBDCs).

The CLARITY Act introduces several key definitions and provisions related to digital assets. It defines a "digital commodity" as a digital asset intrinsically linked to a blockchain system, with its value derived from the system's use. The act also defines a "permitted payment stablecoin" as a digital asset used for payment and issued by an approved entity in the U.S. that must ensure the stablecoin can be redeemed for a fixed monetary value. This definition is incorporated from the GENIUS Act and aims to provide a clear framework for the issuance and regulation of stablecoins.

The act also provides for the registration and regulation of digital commodity brokers, dealers, and exchanges, as well as the establishment of qualified digital asset custodians. These provisions aim to address perceived regulatory deficiencies for U.S. digital asset markets compared to other key jurisdictions and to provide a comprehensive framework for the regulation of digital commodities.

The U.S. Bank's plans to launch a stablecoin highlight the growing interest in digital assets among traditional financial institutions. However, the lack of clear regulatory guidelines remains a significant barrier to innovation in this space. The passage of the CLARITY Act and the GENIUS Act could provide the necessary legal clarity for the U.S. Bank and other institutions to proceed with their stablecoin plans, fostering responsible innovation and improving market integrity and investor protection.