Federal Reserve Vice Chair for Supervision Michelle W. Bowman appeared before the House Financial Services Committee on June 4, telling lawmakers that banks need clearer rules for engaging with digital assets.
The GENIUS Act and stablecoin clarity
At the center of Bowman’s testimony sits the GENIUS Act, enacted in July 2025, which established a federal regulatory framework specifically for payment stablecoins. The law created a set of ground rules for stablecoin issuers, covering things like capital requirements, liquidity standards, and oversight responsibilities. Bowman indicated the Fed is now working alongside the FDIC and the Treasury Department to develop specific guidelines that flesh out those requirements in practice.
She emphasized that the regulatory approach should not stifle innovation, signaling that the Fed wants banks to be able to offer stablecoin-related services without excessive compliance burdens.
Kraken gets a seat at the table
