Federal Reserve officials will advance the formulation of regulatory rules for stablecoins

According to Bloomberg, Federal Reserve senior banking regulator Michelle Bowman plans to announce on Tuesday at a House Financial Services Committee hearing that she will work to establish new regulatory rules for banks and stablecoins.

The initiative aims to ensure healthy competition between traditional Wall Street financial institutions, fintech companies, and cryptocurrency firms. In her prepared remarks, Bowman emphasized that regulators have a responsibility to encourage innovation in a responsible manner while continually enhancing their oversight capabilities regarding the safety and soundness risks that innovation may bring.