Federal Reserve's Bowman: Ensure the banking system can effectively support digital asset activities and encourage innovation in a responsible manner

According to a post by The Block reporter Sarah Wynn, the U.S. Senate Banking Committee's hearing on banking regulators has just begun.

Federal Reserve Vice Chair for Supervision Michelle Bowman stated in her prepared testimony that the central bank is working to implement the stablecoin legislation GENIUS and plans to "provide clarity on how digital assets are handled to ensure that the banking system can effectively support digital asset activities." Bowman stated, "As regulators, it is my responsibility to encourage innovation in a responsible manner, and we must continuously enhance our ability to supervise the risks that innovation may pose to safety and soundness."