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Fed Regulator Eyes New Rules for Banks & Crypto
2 Dec
Summary
- Federal Reserve official to testify before House lawmakers Tuesday.
- New rules planned for banks and stablecoins by top bank cop.
- Goal is to ensure healthy competition between financial sectors.
A leading bank regulator from the Federal Reserve is scheduled to address House lawmakers, signaling an intent to introduce new regulatory frameworks for both traditional banks and stablecoins. This move is part of a broader effort by regulators to cultivate a level playing field, ensuring fair competition across the financial landscape, including established Wall Street institutions, agile fintech companies, and the burgeoning crypto sector.
The regulator, in prepared remarks, articulated a commitment to overseeing innovation in a manner that prioritizes safety and soundness. This involves continuous enhancement of supervisory capabilities to effectively manage the risks inherent in new financial technologies and business models. The objective is to strike a balance between fostering technological advancement and maintaining financial stability.
This proactive stance underscores the regulatory bodies' dedication to adapting to the rapidly changing financial ecosystem. By developing updated rules, the Federal Reserve aims to promote responsible innovation while mitigating potential systemic risks, ultimately supporting a more robust and competitive financial system for all participants.
