Fed’s Bowman Signals New Rules Targeting Banks and Stablecoins
Federal Reserve Governor Michelle Bowman indicated regulators are working on new rules that would specifically target banks’ connections to stablecoins and related crypto activities. Bowman framed the effort as addressing potential threats to financial stability and closing regulatory gaps, though she did not provide a detailed timeline or concrete rule text. Her comments follow growing calls from policymakers to clarify how existing safety and soundness standards apply to crypto-linked services.
The signal matters because rules aimed at banks and stablecoins could raise compliance costs for banks, constrain how they custody or interact with digital assets, and force stablecoin issuers to align more closely with banking standards. Increased oversight may reduce certain market risks but could also affect product availability and costs for crypto users and businesses. Market participants and other agencies will be watching for follow-up guidance and any interagency coordination on enforcement and rulemaking.