The Federal Reserve's final rule severely restricting the ability of state member banks to engage in crypto-related activities was released without a legally required period of notice and comment.

A House Financial Services Committee aide said that the bill is meant to restart discussions with Democratic lawmakers and the White House over how to regulate stablecoins.

Financial institutions and their trade groups fear a loss of funding for loans if customers migrate in large numbers to a central bank digital currency, according to comments to the Federal Reserve about a possible digital dollar. Industry officials are also worried about heightened cybersecurity and money laundering risks.

The Federal Reserve governor addressed misconceptions about the forthcoming instant payment system after delivering remarks on financial innovation.

A House hearing showcased a bipartisan consensus on the need to regulate stablecoins, but the parties disagree down to the definitions, making the legislation's future uncertain.

Securities and Exchange Commission Chairman Gary Gensler emphasized the connection between the cryptocurrency market and the recent banking crisis in testimony on Capitol Hill. He seeks more resources to police crypto firms whose business model, he says, is "noncompliance."

Companies holding a Bitlicense will have to follow similar standards for consumer protection, safety and soundness, and pay more to cover the cost of regulations.