Fed Governor Bowman Pledges New Rules for Banks and Stablecoin Issuers

Federal Reserve Governor Michelle Bowman told House lawmakers on Dec. 2 she will work to establish new rules for banks and stablecoin issuers to ensure healthy competition among Wall Street institutions, fintech firms, and crypto companies, Bloomberg reports. In prepared testimony for the House Financial Services Committee hearing, Bowman said her regulatory responsibility includes encouraging responsible innovation while enhancing supervisory capabilities to address safety and soundness risks from technological advances. She indicated she will collaborate with other agencies to develop capital and diversification requirements for stablecoin issuers under the GENIUS Act, which mandates formal registration and equivalent dollar reserves for such entities.