Hearing Entitled: Innovation at the Speed of Markets: How Regulators Keep Pace with Technology

The GOP Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing on March 26, 2026, titled "Innovation at the Speed of Markets: How Regulators Keep Pace with Technology." The hearing focused on how federal financial regulators are adapting to rapid technological changes in areas such as artificial intelligence, digital assets, and fintech innovation. Key topics included the regulatory framework for emerging technologies, the implementation of the Genius Act related to payment stablecoins, and the use of AI in supervision and fraud prevention. Witnesses from the Federal Reserve Board, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA) testified about their agencies' efforts to foster innovation while maintaining safety, soundness, and consumer protection. Discussions also covered regulatory coordination, training of examiners, third-party risk management, and the potential for regulatory sandboxes. Several members expressed concerns about consumer protection and enforcement, particularly noting the absence of the Consumer Financial Protection Bureau (CFPB) at the hearing. The hearing included questions on prediction markets, insider trading risks, and the Federal Reserve's exploration of "skinny master accounts" to provide fintech firms access to payment rails. The committee emphasized the need for clear, consistent, and transparent regulatory approaches to support U.S. leadership in financial technology innovation.