Fed Official Stresses Banks Must Support Digital Asset Innovation

Fed Advances Digital Asset Strategy

During a recent Senate Banking Committee hearing, Fed Governor Bowman outlined the central bank's strategic approach to digital assets. She highlighted the ongoing development of the GENIUS project, aiming to establish a clear framework for banks to handle digital asset activities efficiently and safely.

Balancing Innovation and Oversight

Bowman emphasized that while fostering financial innovation remains a priority, regulators must also enhance their supervisory capabilities to address potential risks to financial stability. She noted that a resilient banking system is essential for supporting innovation responsibly.

• GENIUS project focuses on payment efficiency
• Fed is committed to secure digital finance infrastructure
• Regulators to maintain close watch on market developments