Fed Unveils New Rules for Banks and Stablecoin Issuers

The Federal Reserve’s top bank supervisor, Michelle Bowman, has signaled a new era of stricter regulation for both traditional banks and stablecoin issuers. In prepared remarks before the House Financial Services Committee, she emphasized the need for regulators to act swiftly to ensure innovation and stability are in harmony. This action is intended to foster fair competition between fintech firms, Wall Street, and players in the crypto industry. Bowman highlighted her commitment to fostering responsible innovation while urging other agencies to continuously improve their ability to identify and mitigate risks associated with emerging technologies.