Federal Reserve Vice Chair for Supervision Michelle Bowman faced questions from Representative Stephen Lynch about her past comments on digital assets.
During a congressional hearing on December 2, Lynch referred to Bowman’s previous remarks encouraging banks to “engage fully” with digital assets, and asked whether the Federal Reserve was taking an active role in shaping cryptocurrency policy.
Bowman clarified that her earlier statements were about digital assets in general, not cryptocurrencies in particular.
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Lynch seemed to seek a clearer explanation of the terms by pressing Bowman on the boundaries between these concepts.
In response, Bowman pointed to Congress’s involvement in guiding the Fed’s responsibilities. She mentioned that, under the GENIUS Act, lawmakers authorized the central bank to develop a regulatory framework for digital assets.
She said during the hearing:
The GENIUS Act requires us to promulgate regulations to allow these types of activities.
Stablecoins, which aim to maintain a stable value by tying their value to assets like the US dollar, are generally less volatile than typical cryptocurrencies. Their purpose is to provide the reliability of traditional money within the digital asset industry.
Meanwhile, the US Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that holding cryptocurrency privately is a basic individual right and aligns with foundational US freedom principles. How? Read the full story.
