The Federal Reserve's Bowman said that regulators will be developing stablecoin rules.

The top regulator of the banking industry at the Federal Reserve plans to testify before lawmakers on Tuesday that she will work to establish new regulations for banks and stablecoins. Regulators are seeking to ensure a healthy competition between Wall Street, fintech companies, and cryptocurrency companies. Deputy Chair of the Federal Reserve responsible for regulation, Michelle Bowman, said in her prepared testimony for the House Financial Services Committee hearing, "As a regulator, my responsibility is to encourage innovation in a responsible manner, and we must continue to enhance our capabilities in supervising the risks innovation brings to safety and soundness." She added that new technologies can create a more efficient banking industry, expand credit channels, and create a fair competitive environment for fintech and digital asset companies. Bowman also stated that she will work with other agencies to establish capital and diversification regulatory requirements for stablecoin issuers under the "GENIUS Act" law. This law requires these issuers to be formally registered and hold equivalent reserves. She emphasized that agencies will provide clear regulatory guidance on digital assets and provide regulatory feedback on proposed new use cases.