I noticed an interesting turn in the American regulatory landscape. During a Senate hearing this week, cryptocurrency topics took center stage, and this is already the second consecutive time that banking regulators have come forward with specific proposals.

The OCC has issued a serious set of requirements for stablecoin issuers — this concerns reserves, asset custody, token buybacks, and registration. Jonathan Gold, who heads the OCC, emphasized that the regulatory framework will allow the industry to develop safely. At the same time, they are still coordinating with the Department of Finance on anti-money laundering and sanctions rules.

The Fed is also not falling behind. Michelle Bowman delivered a speech to senators, discussing the development of capital and liquidity requirements for stablecoin issuers. The point is that the Fed wants to provide clarity to banks — what actions with digital assets are permissible, and what kind of feedback from regulators can be expected. This is a serious departure from the position of recent years, when agencies were much more cautious.

But not everyone is pleased. Elizabeth Warren, a Democrat and chair of the Banking Committee, criticized the approval of Erebor Bank’s federal license application. According to her, the investors in this bank are major donors to Trump and the Republican Party, and the entire project looks like a financial hub for Silicon Valley elites. Warren noted that the lawyer who submitted the application later became a senior deputy controller at the OCC. She promised to investigate whether Erebor’s license was issued in violation of the law.

Travis Hill from the FDIC also spoke out. His agency was the first to push specific proposals for the stablecoin law. Overall, it’s clear that regulators are finally moving toward clear rules for the crypto sector, although the politicization of the process is becoming increasingly evident.