Press Releases

 Today, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Chairman Bryan Steil (WI-01), examined how federal financial regulators prioritize innovation initiatives and are adapting to rapid technological change.

On Regulators Prioritizing Innovation:

Full Committee Chairman French Hill (AR-02) said, “Financial innovation is accelerating rapidly. Federal agencies have to keep pace with these new technologies, and that is a challenge inside a big federal compliance and supervisory bureaucracy. This raises important questions about whether the agencies have the structure and the expertise to respond effectively, and we must ensure that our regulators evolve alongside the markets, the very markets that they oversee.”

Subcommittee Chairman Steil said, "Agencies need the tools, expertise, and flexibility to understand emerging risks without stifling the innovation that drives economic growth. That means embracing new supervisory technologies, investing in talent, and engaging directly with innovators, not as adversaries, but as partners in building a safer and more resilient system."

On Reversing the Biden Administration’s Anti-Crypto Agenda:

Rep. Marlin Stutzman (IN-03) said, “During the Biden Administration, the Fed established the Novel Activities Supervision Program through Supervision and Regulation Letter 23-7. This program was a part of the Biden Administration's Operation Chokepoint 2.0 and stifled digital asset innovation through burdensome requirements imposed on financial institutions. This Committee has helped President Trump reverse the Biden Administration's anti-innovation agenda, including Operation Chokepoint 2.0 through stablecoin and digital asset market structure legislation.”

On Balancing Technological Advancement with Regulatory Certainty:

Rep. William Timmons (SC-04) said, “I often emphasize the need to bring stability and consistency to the agencies under this Committee's jurisdiction. Sharp swings in policy between administrations can create uncertainty, discourage investment, and make it harder for American firms to plan and grow. Providing clear direction and oversight is one of Congress's most important responsibilities, especially in fast moving sectors. Nowhere is that more important than in digital assets and emerging technologies.”

Rep. Zach Nunn (IA-03) said, “Artificial intelligence is already driving real benefits by expanding our financial sector, lowering costs, and helping institutions serve our customers better. And we all agree this is a good thing. But as adoption accelerates, so do the risks, including fraud, misinformation, and adversaries using these very tools against us. We have seen clearly a direction from Congress that is working. The Administration's artificial intelligence framework points in the same direction.”

Rep. Troy Downing (MT-02) said, “I was the Commissioner of Securities and Insurance for the state of Montana, but one of the things that we explored were regulatory sandboxes and had some success there trying to, you know, find a way to try innovative projects that didn't quite fit within the regulatory framework and give them some runway to figure that out.”

Witnesses Echoed the Work of the Committee:

Mr. Randall Guynn, Director, Division of Supervision and Regulation, Federal Reserve Board said, “Artificial intelligence (AI) has been around in various forms for some time, and Federal Reserve supervisory staff have continually monitored banks’ use of it. Many variations of AI, like machine learning, have been in use for years and banks often deploy these mature, time-tested capabilities at their firms. For instance, some firms use machine learning tools in fraud detection and prevention. The use of AI has grown markedly over the past several years at supervised banks, which are deploying both in-house and vendor products. AI can improve operational efficiencies, enhance risk management capabilities, generate new content, and provide new analytical insights.”

Mr. Jay Gallagher, Senior Deputy Comptroller and Chief of National Bank Examiner, Office of the Comptroller of the Currency said, “In addition to implementing a federal framework for permitted payment stablecoin issuers, the OCC is facilitating the adoption of AI by interested banks to improve business functions. The use of AI among banks is not new. However, recent developments, particularly generative and agentic AI, offer banks opportunities to automate and improve core operational, customer service, and other activities in novel ways. As these technologies evolve, the OCC aims to ensure adoption proceeds in a manner consistent with safety, soundness, and applicable law. Many banks utilize third-party technology providers to gain a competitive edge in a rapidly evolving marketplace. As the market continues to evolve, the OCC is actively developing regulatory approaches that right size supervisory expectations, emphasize institution-specific risk management, and position the OCC to support community banks that utilize these relationships.”

Mr. Ryan Billingsley, Director, Division of Risk Management Supervision, Federal Deposit Insurance Corporation said, “We are seeing firsthand how banks are adopting a range of technologies to improve operational efficiencies, expand product offerings to meet customer needs, and enhance customer interactions. Banks have increasingly utilized AI and machine learning in a range of areas, including fraud detection, anti-money laundering and countering the financing of terrorism (AML/CFT) processes, and credit underwriting. For example, some banks have used AI and cash flow data to assist in underwriting for those who may not have access to credit under more traditional underwriting methods.”

Ms. Amanda Parkhill, Acting Director, Office of Examination and Insurance, National Credit Union Administration said, “Credit unions have a long history of embracing technologies that enhance member experience and service quality and have expanded into using AI powered tools- including automated loan underwriting, virtual assistants for member service, and fraud detection software. The financial services industry is evolving rapidly with advances in AI, blockchain, and digital assets. As credit unions evaluate, implement, and manage various technologies, NCUA recognizes the importance of supporting them in these endeavors. To that end, the agency added an AI Resources page to our website in August 2025.”

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