The Federal Reserve's top banking regulator plans to tell House lawmakers on Tuesday that she will work to establish new rules for banks and stablecoins. Regulators aim to ensure healthy competition among Wall Street firms, fintech companies, and crypto businesses.

In prepared remarks for a House Financial Services Committee hearing, Fed Vice Chair for Supervision Michelle Bowman stated, "As regulators, our responsibility is to encourage innovation responsibly while continuously enhancing our ability to oversee risks to safety and soundness."

She added that new technologies could create a more efficient banking system, expand access to credit, and level the playing field for fintech and digital asset firms.

Bowman also noted that she would collaborate with other agencies to develop capital and diversification regulations for stablecoin issuers under the proposed "GENIUS Act." The law would require issuers to formally register and hold equivalent reserves. She emphasized that agencies would provide clear regulatory guidance on digital assets and feedback on proposed new use cases.

Bowman’s testimony also highlighted her efforts to finalize several bank capital measures, including the long-awaited Basel III endgame rules.

She stated, "My approach is to address the calibration of the new framework from the ground up, rather than reverse-engineering to meet predetermined capital requirements."