The Federal Reserve has signaled a shift in regulating banks’ work with digital assets. Vice Chair for Supervision Michelle Bowman stated in the Senate that previous restrictions are being reviewed and capital requirements for stablecoin issuers are being developed. The regulator is betting on a ‘pro-innovation’ course while maintaining supervisory frameworks.
Clear Rules Instead of Targeted Bans
On February 26, during Senate Banking Committee hearings, Bowman confirmed that the Fed has already repealed a number of rules that effectively hindered the adoption of new technologies. This refers to documents from 2022–2023 that required prior notification and written consent to launch operations with digital assets and dollar tokens.
According to her, the regulator intends to provide ‘clarity regarding the permissibility of activities’ for banks in the digital asset sector and is ready to give feedback on new use cases. This concerns crypto asset custody, tokenized payments, blockchain services, and stablecoin issuance.
In effect, the Fed is moving from a deterrence model to a managed access model.
Capital and Liquidity for Stablecoins
The key block concerns the development of capital and liquidity standards for stablecoin issuers. Bowman noted that the work is being carried out jointly with other banking regulators within the requirements of the GENIUS Act.
This means an attempt to integrate stablecoin issuance into the existing banking architecture, rather than placing it in a separate legal regime. With this approach, banks will be able to work with tokenized dollars if there are clear reserve and liquidity requirements.
This is an important signal for the market. Stablecoins may receive the status of a regulated banking instrument, rather than remaining in a gray area.
What Has Already Been Repealed
In 2025, the Fed gradually rolled back a number of crypto-specific barriers:
- the requirement for prior approval for digital asset operations was repealed
- the Novel Activities Supervision program was discontinued
- the joint 2023 statements on crypto risks were withdrawn
- the guidance on Regulation H was updated
- in February 2026, the process of excluding ‘reputational risk’ from supervisory criteria was launched
The last point is especially important. Previously, banks effectively faced informal restrictions due to regulators’ concerns about ‘reputational risks’ when working with crypto companies. Removing this factor may simplify the industry’s access to banking services.
Special Focus on Small Banks
Bowman specifically emphasized the need for proportional supervision. According to her, requirements developed for the largest banks should not automatically apply to smaller and less complex institutions.
This opens up space for regional and community banks, which may become conduits for digital services in the traditional financial system.
This is a potential driver for the industry. Small banks are more often willing to test new technologies if there are clear rules and limited regulatory pressure.
Supervisory Reset
The set of measures looks like a course adjustment, not a full liberalization. The Fed is not abandoning supervision, but is seeking to integrate digital assets into existing banking regulatory frameworks.
Three areas remain in focus:
- clear definition of permissible operations
- creation of a capital regime for stablecoins
- elimination of uncertainty for banks working with blockchain infrastructure
This approach reduces legal uncertainty, which in recent years has constrained institutional participation.
What This Means for the Market
If the Fed indeed enshrines the new rules, banks will have more room for custodial services, asset tokenization, and settlements in stablecoins. This could accelerate the integration of digital tools into the traditional financial system.
However, much will depend on the specific capital and liquidity parameters. Requirements that are too strict could limit the economic attractiveness of issuing stablecoins.
In the short term, the market perceives the statements as a softening of rhetoric. In the medium term, the key will be the text of future regulatory documents.
The Fed is taking a step toward clarity. The question now is whether this signal will turn into a sustainable regulatory framework for banks’ work with digital assets.
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