Bowman Signals Federal Push for Banks and Stablecoins Rules Under the Genius Act

Stablecoins regulation remains a focal point as Bloomberg reports that Federal Reserve Governor Bowman testified before the House Financial Services Committee, signaling an intent to advance a comprehensive regulatory framework for banks and stablecoin issuers. The objective is to sustain healthy competition among Wall Street, fintechs, and cryptocurrency firms while strengthening risk oversight across the digital-asset ecosystem.

She emphasized that regulation should encourage responsible innovation and that agencies must continuously enhance their capabilities to monitor safety and soundness risks posed by new technologies. The remarks underscore the belief that evolving tools can boost financial efficiency and broaden access to credit while preserving market integrity against unfair competition with non-bank digital-asset players.

Bowman noted forthcoming alignment with the Genius Act to set formal capital and regulatory obligations for stablecoin issuers, including mandatory registration and equivalent U.S. dollar reserves. The plan involves coordinated action across agencies to implement robust reserve standards and transparent reporting, reinforcing investor protections in the U.S. dollar–backed token market.