Congress Grills Fed's Bowman as Lawmakers Clash Over Stablecoin Rules

Published at 2025-12-02 21:00:15

On Dec. 2, 2025, Representative Stephen Lynch pressed Federal Reserve Governor Michelle Bowman during a congressional hearing over comments she delivered about digital assets at a November conference in Madrid, putting Bowman on the defensive as lawmakers sought clarity on the Fed's stance. Lynch used the Madrid remarks to question whether the Fed is overstepping its authority or failing to provide a clear framework for stablecoin oversight, leading to sharp exchanges and requests for firmer commitments.

The clash underscores mounting congressional impatience with regulatory ambiguity as stablecoins grow in use and scale. Lawmakers signaled interest in expedited legislation and clearer jurisdictional lines, which could mean more direct supervision or cross-agency coordination. For market participants, the hearing increases the likelihood of faster policy action and reduces short-term certainty about how issuance, custody, and systemic-risk safeguards will be enforced.

Share on:

Related news

Binance Seeks Five More APAC Licenses in Major Asia Push

Binance plans to secure five additional operational licenses across the Asia-Pacific by the end of 2026, intensifying its regional expansion and regulatory engagement. The move follows the exchange's broader strategy to normalize local operations and grow product access.

Published at 2026-03-04 08:00:10
AI Agents Prefer Bitcoin in Nearly Half of Responses, Stablecoins Lead for Payments

A Bitcoin Policy Institute study of 36 AI models published March 3, 2026 found Bitcoin was the top monetary choice in 48% of responses, while payment-specific prompts saw over half of models favor stablecoins.

Published at 2026-03-04 04:00:46
Trump Urges Banks to Back GENIUS Act, Calls Weakening 'Unacceptable'

Donald Trump urged banking groups on March 3 to “strike a favorable deal” with the crypto industry and warned any effort to weaken the GENIUS Act is “unacceptable.” His intervention raises political pressure as lawmakers negotiate the stalled bill.

Published at 2026-03-04 01:30:55
SoFiUSD Comes to Mastercard Network for Stablecoin Settlements

SoFi and Mastercard will support settlement in SoFiUSD across Mastercard’s global payments network, marking a move to integrate regulated U.S. dollar stablecoins into mainstream card infrastructure. The integration aims to speed settlement and expand on‑ramp/off‑ramp options for merchants and payment providers.

Published at 2026-03-03 18:15:27
FATF: Stablecoins Now Main Vehicle for Sanctions Evasion and Money Laundering

FATF warns stablecoins now account for the majority of illicit crypto activity, with peer-to-peer transfers enabling sanctions evasion and money laundering. The report signals a need for stronger AML controls and closer scrutiny of off-ramps and decentralized rails.