The Federal Reserve Vice Chairman responsible for supervision, Michael Barr, attended a Senate Banking Committee hearing to outline the priorities for modernizing banking regulation. He emphasized tailoring regulatory rules for community banks, including updating outdated thresholds and streamlining merger processes. For large banks, the Federal Reserve is advancing reforms in areas such as stress testing, supplementary leverage ratio, Basel III implementation, and the additional loss absorbency framework for Global Systemically Important Banks (G-SIBs). Barr also highlighted efforts to provide regulatory clarity for digital assets and stablecoins, encourage responsible innovation, and enhance regulatory transparency and objectivity.