Lawmakers Press Fed’s Bowman Over Digital Asset Remarks

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Fed’s Michelle Bowman Faces Heat in Congress Over Digital Asset Remarks

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 03, 2025

Key Takeaways

Rep. Stephen Lynch questioned Fed Vice Chair Michelle Bowman over her past comments urging banks to “engage fully” with digital assets;
Bowman clarified her remarks referred broadly to digital assets, not specifically to cryptocurrencies;
She said Congress, through the GENIUS Act, directed the Fed to create regulations for digital assets, which framed the bank’s role as legislative.

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Fed’s Michelle Bowman Faces Heat in Congress Over Digital Asset Remarks

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Federal Reserve Vice Chair for Supervision Michelle Bowman faced questions from Representative Stephen Lynch about her past comments on digital assets.

During a congressional hearing on December 2, Lynch referred to Bowman’s previous remarks encouraging banks to “engage fully” with digital assets, and asked whether the Federal Reserve was taking an active role in shaping cryptocurrency policy.

Bowman clarified that her earlier statements were about digital assets in general, not cryptocurrencies in particular.

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Lynch seemed to seek a clearer explanation of the terms by pressing Bowman on the boundaries between these concepts.

In response, Bowman pointed to Congress’s involvement in guiding the Fed’s responsibilities. She mentioned that, under the GENIUS Act, lawmakers authorized the central bank to develop a regulatory framework for digital assets.

She said during the hearing:

The GENIUS Act requires us to promulgate regulations to allow these types of activities.

Stablecoins, which aim to maintain a stable value by tying their value to assets like the US dollar, are generally less volatile than typical cryptocurrencies. Their purpose is to provide the reliability of traditional money within the digital asset industry.

Meanwhile, the US Securities and Exchange Commission (SEC) Commissioner Hester Peirce stated that holding cryptocurrency privately is a basic individual right and aligns with foundational US freedom principles. How? Read the full story.