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