Federal Reserve Board Governor Christopher J. Waller considered the risks and benefits of tokenization and artificial intelligence as they gain prominence within the banking industry.
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The Federal Reserve Board and the Treasury Office of Foreign Assets Control fined a banking entity for apparent sanctions violations. The regulators charged that the bank provided software to a European bank engaged in transactions with sanctioned jurisdictions.
Federal Reserve Board Governor Michelle W. Bowman addressed the need for a “transparent regulatory posture” in order to foster innovation in the banking system and address concurrent risk.
Federal Reserve Board Governor Lael Brainard highlighted the FRB's approach to digital currency and other technological innovation in the financial markets.
Federal Reserve Board ("FRB") Governor Lael Brainard urged firms to be mindful of risks associated with artificial intelligence ("AI") innovation and advised regulators to remain diligent in the quest to understand and regulate the use of AI by supervised firms. In remarks at the FinTech and New Financial Landscape Conference, Ms. Brainard underscored the "pace" and "ubiquity" of AI innovation. She emphasized the benefits and potential risks to bank safety and consumer protection that new AI applications pose. Ms. Brainard said that regulation and supervision designed to focus on risks should