Crypto Regulations Take Center Stage in Senate Banking Hearing
The U.S. Senate Banking Committee convened its regular oversight session, but the agenda pivoted swiftly toward digital money. A new proposal from the Office of the Comptroller of the Currency (OCC) set the tone, outlining rules for stablecoins under last year’s GENIUS Act. The plan would require issuers to:
- Keep sufficient reserves
- Secure their assets
- Allow users to redeem tokens safely
- Follow a clear registration process
OCC chief Jonathan Gould emphasized that the agency has carefully considered how to let the stable‑coin sector grow while protecting consumers. He added that further work on anti‑money‑laundering and sanctions rules is still pending with the Treasury Department.
Before senators heard testimony, Federal Reserve Vice Chair Michelle Bowman released her remarks. She opened with a discussion of the GENIUS Act and digital assets, stressing that the Fed is coordinating with other regulators to set capital and liquidity standards for stable‑coin issuers. Bowman also highlighted the need for clear guidance on permissible activities and how new use cases should be evaluated.
These supportive positions from the OCC and Fed contrast with past years when U.S. banking regulators were more cautious about digital assets, aiming to prevent banks from jumping into the space without close supervision.
However, Senator Elizabeth Warren, a key Democrat on the panel, criticized this shift. She questioned the rapid approval of Erebor Bank’s charter by the OCC, noting that supporters of the bank have donated heavily to Republican leaders. Warren warned that if the charter was granted through improper political influence, it could be revoked.
The debate underscores a growing tension: regulators are eager to provide a framework for crypto, while lawmakers remain wary of potential favoritism and systemic risk.
