Fed's Bowman: Will set new rules for banks and stablecoins to promote fair competition in the encryption industry.

[Block Rhythm] On December 2nd, there is a noteworthy piece of news - The Federal Reserve Board of Governors member Bowman stated at a House hearing that new rules of the game will be established for banks and stablecoins.

Her core point is very clear: regulators must ensure fair competition between traditional Wall Street, fintech companies, and cryptocurrency companies. Bowman stated in her prepared remarks: “As a regulator, my responsibility is to encourage innovation in a responsible manner, and we must continually enhance our capabilities to regulate the safe and sound risks brought by innovation.” She emphasized that new technologies can make the banking industry more efficient, both expanding access to credit and allowing banks to compete on the same level with fintech and digital asset companies.

More specifically, Bowman stated that they would collaborate with other agencies to set regulations for stablecoin issuers in accordance with the requirements of the “Genius Act”—including capital and diversified regulatory standards. This act requires stablecoin issuers to be formally registered and to hold dollar reserves equivalent to the amount issued.

It seems that the regulatory authorities' attitude towards the cryptocurrency industry is shifting from “watching” to “regulated participation,” and the stablecoin sector is expected to welcome a clearer regulatory framework.