A group of Republican members of the U.S. House Financial Services Committee has penned a letter urging regulatory bodies like the Federal Reserve, FDIC, and OCC to revise their approaches towards blockchain technology regulation. The lawmakers argue that existing regulations, such as the FDIC’s FIL-16-2022 and the Federal Reserve’s SR 22-6 and SR 23-8, impose a burdensome regulatory framework on banks using blockchain technology, stifle innovation, and limit their involvement in the stablecoin ecosystem. They express concern that this approach hinders the competitiveness of the U.S. financial sector. Instead, they advocate for a more neutral and open regulatory framework to encourage innovation and maintain the nation’s leadership position within finance.