The U.S. Financial Services Committee published remarks from members and testimony from federal banking regulators focused on how supervisory agencies should adapt to rapid innovation, particularly in artificial intelligence and digital assets. The release frames the core challenge as ensuring regulators have the structure, expertise, and tools to address emerging risks without suppressing new technologies. Chairman French Hill questioned whether agencies’ existing bureaucratic structures and skill sets are adequate for accelerating innovation, while Subcommittee Chairman Steil called for new supervisory technologies, investment in talent, and more direct engagement with innovators. Members also highlighted the need for regulatory certainty across administrations, with Rep. Stutzman criticising the Federal Reserve’s Novel Activities Supervision Program under Supervision and Regulation Letter 23-7 as part of “Operation Chokepoint 2.0” and pointing to stablecoin and digital asset market structure legislation as reversing that approach. Witnesses from the Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration described growing use of AI and machine learning in supervised institutions, including for fraud detection, AML/CFT processes, credit underwriting, and operational efficiency, with the OCC describing efforts to “right size” supervisory expectations and NCUA noting it added an AI Resources page to its website in August 2025.
U.S. Financial Services Committee 2026-03-26
U.S. Financial Services Committee publishes oversight remarks urging regulators to keep pace with AI and digital-asset innovation
The U.S. Financial Services Committee released remarks and testimony from federal banking regulators on adapting supervisory frameworks to rapid innovation in AI and digital assets. Key discussions included the adequacy of current agency structures, the need for new supervisory technologies, and regulatory certainty across administrations. Criticism was directed at the Federal Reserve's Novel Activities Supervision Program, with calls for legislative changes in stablecoin and digital asset markets.