Federal Reserve Bowman: Bank regulators are working on stablecoin rules

According to Bloomberg, Bowman, a Federal Reserve governor, plans to tell House lawmakers on Tuesday that she will work to develop new rules for banks and stablecoins, as regulators seek to ensure healthy competition between Wall Street, fintech companies and cryptocurrency companies. "As a regulator, my role is to encourage innovation in a responsible manner, and we must continually improve our ability to regulate the safety and soundness risks that come with innovation," Bowman said in remarks prepared for a House Financial Services committee hearing. She added that new technologies could create a more efficient banking industry, expanding access to credit while also leveling the playing field with fintech and digital asset companies.
Ms. Baumann also said she would work with other agencies to develop capital and diversification regulations for stablecoin issuers as required by the Genius Act, which requires them to be formally registered and hold equivalent dollar reserves. She stressed that agencies would provide clarity on digital asset issues and provide regulatory feedback on proposed new use cases.