Fed Bowman: Will promote stablecoin regulatory standards, will be based on the "Genius Act" as the core standard.

The Federal Reserve (FED) (Fed) member responsible for bank regulation, Michelle Bowman (, announced at the House Financial Service Committee, emphasizing that she will push for new regulations related to bank and stablecoin issuance. She stated that she would cooperate with other regulatory agencies and develop stablecoin capital and decentralization regulations in accordance with the stablecoin bill “Genius Act” requirements, including formal sign up, one-to-one USD reserves, and other requirements. She also emphasized that regulators would provide clearer digital asset rules and feedback on new use cases.

Baumann emphasized the importance of innovative development, but regulation must also keep up.

Baumann stated that regulation is not meant to hinder financial technology, but to ensure that innovation can progress within a “responsible framework.”

She emphasized that the introduction of technology can not only enhance the efficiency of the banking system but also improve the way the public access credit, allowing banks, financial technology, and cryptocurrency operators to compete in a fairer environment. However, she also reminded that innovation comes with risks, and regulatory agencies must continuously strengthen their capabilities to maintain the safety and soundness of the financial system.

Stablecoin regulation is in effect, with clear thresholds set under the “Genius Act”.

Speaking about stablecoin regulation, Bowman stated that a comprehensive regulatory framework will be established in accordance with the “Genius Act”. In the future, stablecoin issuers must sign up with the regulatory authorities and ensure that token assets are fully backed by a “dollar-for-dollar reserve” while meeting capital and risk diversification requirements.

She added that regulatory authorities will provide more specific regulatory guidelines for digital assets and will offer corresponding regulatory feedback for new use cases proposed by the market.

The struggle between banks and crypto operators continues, and whether the responsibilities of the operators are equal has become a focal point.

Bauman's remarks come at a sensitive moment when the banking sector and cryptocurrency operators are competing for regulatory positioning. Cryptocurrency operators believe that if they can obtain a banking license, it would not only strengthen their legitimacy but also allow them to enjoy channels and benefits that are originally limited to banks.

However, traditional financial institutions are concerned that this may lead to unequal competition, and even allow some operators to hold bank licenses without having to fulfill complete regulatory obligations, thereby undermining the credibility of the entire banking license system. This controversy highlights that financial regulation in the United States is still being reshaped, and the conflicts of interest among various industry parties are becoming increasingly apparent.

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The Basel III adjustments are imminent, and banking capital rules are entering a critical phase.

Speaking about bank capital regulations, Bauman stated that she is promoting the final versions of multiple capital requirements, among which the Basel III Endgame ) is the most closely watched. She emphasized that her approach is to adjust the framework “from the ground up” rather than reverse-engineering standards to achieve a predetermined outcome.

(Note: The Basel III Accord is the final version of the global banking capital standard Basel III, aimed at allowing large banks to calculate risks in a more transparent and unified manner and to raise capital levels, in order to avoid issues of capital inadequacy and risk underestimation like those seen during the 2008 financial crisis. )

According to reports, the Fed has presented a revised direction to other regulatory agencies, which is expected to significantly relax the capital requirements for large banks proposed during the Biden administration. Additionally, Bowman stated that the Fed is simultaneously adjusting the additional capital for large banks and ensuring that the related adjustments are consistent with the overall capital framework reform.

This article Fed Bowman: will promote stablecoin regulatory norms, with the “Genius Act” as the core standard, first appeared in Chain News ABMedia.