Senate hearing for U.S. bank regulators thrusts crypto into starring role

CoinDesk

by Jesse Hamilton

February 26, 2026

AI-Generated Deep Dive Summary

The U.S. Senate Banking Committee held a hearing on banking regulator oversight, with cryptocurrency taking center stage. The Office of the Comptroller of the Currency (OCC) proposed rules for stablecoins under the GENIUS Act, focusing on issuer standards like reserve requirements and asset custody. OCC chief Jonathan Gould emphasized creating a safe framework for the stablecoin industry to thrive. The proposal aligns with the Fed's efforts to develop regulations for digital assets, including capital and liquidity standards for stablecoin issuers. Federal Reserve Vice Chair Michelle Bowman highlighted the need for clarity on permissible activities in the banking system regarding digital assets. This marks a shift from past hesitancy by U.S. regulators toward crypto, as they now aim to provide clearer guidelines. However, not all voices are supportive. Senator Elizabeth Warren criticized the OCC's decision to approve Erebor Bank's charter, accusing it of favoring President Trump and GOP donors. She raised concerns about potential political influence in regulatory decisions, particularly regarding World Liberty Financial, a crypto firm linked to Trump's family. This hearing underscores the growing importance of crypto in financial regulation. Clear rules could foster innovation and attract investment, but critics warn against conflicts of interest and rushed approvals that may undermine public trust. The outcome of these discussions will shape the future of digital assets in the U.S. banking system, balancing growth with oversight to ensure accountability and fairness.

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Originally published on CoinDesk on 2/26/2026