Federal Reserve officials will advance the development of stablecoin regulations

Michelle Bowman, the Federal Reserve's top banking regulator, plans to announce at a House Financial Services Committee hearing on Tuesday that she will work to establish new regulatory rules for banks and stablecoins. The move is aimed at ensuring healthy competition between Wall Street's traditional Financial Institution Groups, fintech firms and cryptocurrency businesses. In her prepared remarks, Bowman emphasized that the role of regulators is to encourage innovation in a responsible manner, while continuously improving their ability to oversee the safety and soundness risks that innovation can pose.