Federal Reserve Governor Bowman: Seeking to Establish New Rules for Banks and Stablecoins to Ensure Fair Competition

December 2 (Bloomberg) — Federal Reserve Governor Michelle Bowman told the House Financial Services Committee on Friday that she aims to craft new rules for banks and stablecoin issuers, as regulators seek to ensure healthy competition between Wall Street, fintech firms and cryptocurrency companies. In prepared remarks for the hearing, Bowman said: “As a regulator, my responsibility is to foster responsible innovation—and we must continuously boost our ability to oversee the safety and soundness risks posed by new technologies. These innovations can create a more efficient banking system that expands credit access while enabling banks to compete fairly with fintech and digital asset firms.” Bowman also noted she will collaborate with other agencies to set stablecoin capital and compliance requirements in line with the Genius Act, which mandates formal registration for issuers and requires them to hold reserves equal to the value of outstanding stablecoins.