I just caught the U.S. Senate’s banking oversight hearing, and cryptocurrency is once again at the center of the discussion. What’s interesting is that the OCC has released a fairly comprehensive policy proposal related to stablecoins, to meet the requirements of the GENIUS Act, which was signed last year.

This will set out specific standards for stablecoin issuers in the U.S., covering everything from reserve requirements and how assets are held to the registration process. Jonathan Gould, head of the OCC, said they have carefully considered this to ensure that stablecoins can grow safely and soundly. The agency is also working with the U.S. Department of the Treasury to finalize regulations related to anti-money laundering and sanctions protection.

One noteworthy point is that the Fed is also becoming more proactive. Michelle Bowman, Vice Chair of the Federal Reserve in charge of supervision, said the Fed is developing capital and liquidity regulations for stablecoin issuers under the GENIUS Act. She emphasized that they need to provide clarity on how digital assets will be handled so that the banking system is ready to support these activities.

But I also noticed that not everyone is happy about this change. Senator Elizabeth Warren is still maintaining her critical stance, especially regarding the fast-track approval for Erebor Bank. She believes that Erebor Bank’s backers are major donors to President Donald Trump and the Republican Party. Warren wrote that Erebor will serve as a financial hub for a group of interconnected Silicon Valley companies owned by these billionaires. She also pointed out that the lawyer who applied to obtain a banking license for Erebor was quickly hired by the OCC as a senior deputy director, which has raised questions about the transparency of the process.

Travis Hill, Chairman of the FDIC, also spoke that day. Under his leadership, the FDIC was the first entity to begin pushing forward the GENIUS Act proposals. Overall, this is an important stage for cryptocurrency regulation in the U.S., with developments that are quite complex and highly controversial.