Woofun AI reports that Bank of America has appointed Sonali Theisen, Kevin Milsom, and Adam Dixon to lead its digital asset initiatives, a strategic move occurring against the backdrop of the delayed GENIUS Act implementation.

The leadership restructuring was confirmed through internal memos cited by Reuters and Bloomberg on July 17, prompting commentary from @Nxtlvl, a member of the Polygon Labs team, who posted on X that the bank is accelerating development in digital assets and AI. The new platform scope encompasses stablecoins, tokenized deposits, custody, and crypto settlements, with Sonali Theisen, previously the global head of FICC electronic trading, overseeing design and governance. Kevin Milsom was named head of the platform’s AI transformation, while Adam Dixon continued as head of digital asset transformation, retaining responsibility for tokenized deposits, crypto settlements, and custody services. This organizational shift signals a quiet but significant expansion within the world’s largest bank, aiming to integrate these technologies into its global markets operations.

The announcement coincided with a downturn in the broader crypto market, where Bitcoin prices had retreated significantly from their previous highs. On July 20, the price of Bitcoin hovered around $65,000, representing a decline of more than $50,000 compared to its value a year earlier. This market context highlights the contrast between institutional preparation for digital asset integration and the prevailing retail sentiment, which remains cautious amid price volatility. The timing of these appointments suggests that Bank of America is positioning itself for long-term adoption rather than reacting to short-term market fluctuations.

Amidst these personnel changes, a viral claim regarding a potential $6 trillion shift in deposits has dominated social media discourse. @CliporaGo, a South Korean crypto commentary account, posted on July 15 that Bank of America’s CEO explicitly stated that $6 trillion in bank deposits could flow into stablecoins. The post emphasized that this warning originated from Brian Moynihan, the CEO of the second-largest bank in the U.S., rather than from crypto analysts or blockchain startups. This attribution lent significant weight to the narrative, suggesting that traditional financial institutions are acutely aware of the threat stablecoins pose to traditional deposit structures.

However, a closer examination reveals that the $6 trillion figure is often cited without its original conditions and contains timeline errors. Brian Moynihan originally made these remarks during the bank’s fourth-quarter earnings call on January 14 of this year, specifying that deposits might move only if stablecoins were allowed to pay interest—a feature not permitted under the GENIUS Act. The origin of this figure traces back to a report by the Treasury’s Borrowing Advisory Committee (TBAC) in April 2025, which estimated that approximately $6.6 trillion in transactional bank deposits could face a long-term risk of flowing into stablecoins. The viral narrative omitted the critical restriction on interest-bearing stablecoins, thereby exaggerating the immediate threat to traditional banking deposits.

Woofun AI data shows that Moynihan has never hidden the bank’s intentions regarding digital assets, having previously stated his willingness to enter the business if legal frameworks permit. In February 2025, he said at a breakfast meeting at the Washington Economic Club, "If the law allows it, we’ll get into this business." At that time, no legislation related to stablecoins had been introduced yet, indicating that the bank’s strategy is contingent upon regulatory clarity. This statement underscores the cautious approach of major financial institutions, which are waiting for definitive legal guidelines before fully committing resources to stablecoin-related products.

The regulatory timeline for the GENIUS Act has further complicated the landscape, with significant delays in final implementation rules. The GENIUS Act was signed on July 18, 2025, giving regulators one year to establish final implementation rules.

However, by the deadline of July 18, 2026, only ten proposed rules had been released, none of which were finalized, pushing the law’s effective date to January 18, 2027. This delay has created a period of uncertainty, during which banks like Bank of America are preparing internally while awaiting external regulatory confirmation. The gap between the signing of the act and its effective date highlights the complexity of integrating new financial technologies into existing regulatory frameworks.

Despite the regulatory delays, major banks are not waiting for rules to be perfected before advancing their tokenization efforts. JPMorgan’s JPMD tokenized deposits are already operating on Coinbase’s Base network, while Citibank’s Token Services offers round-the-clock tokenized dollar settlement services. JPMorgan, Citibank, Bank of America, Wells Fargo, and HSBC are collaborating through The Clearing House to build a shared tokenized deposit network, with the goal of launching it in the first half of 2027. This collaborative approach aims to create a standardized infrastructure for tokenized assets, reducing the burden on individual institutions to develop proprietary solutions. The involvement of multiple major banks indicates a collective recognition of the potential benefits of tokenization, even in the absence of finalized regulations.

Expert opinions remain divided on the impact of these institutional moves, with some highlighting the disconnect between retail sentiment and institutional adoption. Sami Start, CEO of crypto payment company Transak, said in an On The Margin podcast, "Retail crypto trading does indeed feel like there’s a 'crypto winter' right now, but tokenization has nothing to do with that. Institutions are adopting stablecoins for real-world use cases, and that’s why we see growth in this area." Conversely, Alessandro Hatami, managing partner at Pacemakers.io, told Bloomberg, "These banks have been announcing blockchain projects for over a decade.

Banks are also competitors to each other, which makes it very difficult to actually implement shared infrastructure." Jordan McKee, head of fintech research at S&P Global Market Intelligence, said in a CoinDesk report in April of this year that most financial institutions are still in an "early and cautious" stage regarding their stablecoin strategies. The stablecoin market itself remains relatively flat, with a total supply close to $300 billion, down by about $10 billion from its peak in May. Tether’s USDT and Circle’s USDC account for over 80% of the market, while Neo, CEO of the new on-chain bank UR, noted in the same podcast that "from a fundamental structural perspective, nothing has really changed."

Future projections suggest a significant expansion in stablecoin usage, driven by on-chain settlement data and industry forecasts. Data from Artemis Analytics shows that on-chain settlement amounts using stablecoins reached $33 trillion in 2025, a 72% year-on-year increase. Bloomberg Intelligence predicts that payment volumes could exceed $50 trillion by 2030, while 21Shares estimates that the stablecoin market size will break through $1 trillion by the end of 2026. The next key date is January 18, 2027, when the GENIUS Act will take effect regardless of whether the rules are finalized.

By then, internal bank memos will carry more weight than external social media posts. Nicole Sandler, chief ecosystem officer at tokenized currency settlement startup Ubyx, told Bloomberg in July, "The competitive threat is now clear and measurable." As the integration of traditional finance and crypto accelerates, Bank of America’s quiet moves may just be the tip of the iceberg in a larger trend, with deposit migrations and interest-bearing stablecoins continuing to test the balance between banks and regulators.