On December 2nd, Bloomberg reported that Federal Reserve Governor Bowman told members of the House of Representatives that she will work to develop new rules for banks and stablecoins, as regulators seek to ensure healthy competition among Wall Street, fintech companies, and cryptocurrency companies. In prepared remarks for a hearing before the House Financial Services Committee, Bowman stated, "As a regulator, my responsibility is to encourage innovation responsibly, and we must continuously improve our ability to regulate the safe and robust risks that innovation brings. New technologies can create a more efficient banking industry, expanding access to credit while allowing banks to compete level with fintech and digital asset companies."
Bowman also stated that she will collaborate with other agencies to develop capital and diversity regulations for stablecoin issuers, in accordance with the requirements of the Genius Act. The Genius Act requires these issuers to formally register and hold an equivalent amount of dollar reserves.
