Rich by Coin

The Senate Banking Committee has opened its regular hearing with heightened focus on cryptocurrency, including policy moves from the Office of the Comptroller of the Currency. The GENIUS Act framework would regulate stablecoin issuers, proposing standards for reserves, asset management, customer redemption, and registration processes. OCC Director Jonathan Gould said the agency has carefully reviewed the proposed regulatory framework to ensure a safe and sound environment for the stablecoin sector, while noting ongoing work with the Treasury on AML and sanctions compliance.

As hearings approach, Fed Vice Chair for Supervision Michelle Bowman indicated the Fed is coordinating with other banking regulators to develop capital and liquidity standards for stablecoin issuers as required by GENIUS. Bowman argued that clarifying digital asset processing and enabling the banking system to support digital asset activities will require clear rules and regulatory feedback on new use cases. The stance from OCC and the Fed reflects a cautious, oversight-focused approach designed to curb uninhibited expansion by banks into crypto without proper approvals.

Democratic Senator Elizabeth Warren has criticized this regulatory openness and is seeking detailed answers. Warren highlighted Erebor’s OCC application as a case study in concerns about political influence and donor connections tied to the approval process, noting the involvement of a lawyer who joined OCC as a senior deputy supervisor. The controversy underscores the ongoing tension between regulatory clarity and political considerations in bank crypto initiatives.

Separately, Indiana lawmakers approved a bill allowing public pension funds to invest in Bitcoin and digital assets, a move supported by broader alignment with states pursuing crypto exposure. This development comes as more states look to diversify public funds with digital assets, echoing broader political discussions around crypto policy. Indiana also passed legislation to ban cryptocurrency ATMs following fraud reports, illustrating the varied and evolving regulatory landscape across states.