Federal Reserve Governor Michelle Bowman has emphasized the need for regulators and banks to recognize the importance of technologies such as AI and cryptocurrency to maintain the banking system's relevance. Speaking at the Wyoming Blockchain Symposium, Bowman addressed her intent to limit regulatory scrutiny related to reputational risk, highlighted the potential of technology and suggested that regulators should facilitate the integration of new technology into the banking system. "Change is coming," Bowman said.

Fintechs Payfinia and Matera are introducing a payment solution that uses QR codes to initiate account-to-account payments over FedNow without sharing sensitive information. The solution is designed to offer a seamless, embeddable experience for financial institutions, potentially driving broader adoption of instant payment technology. The approach is inspired by the success of Brazil's Pix system.

Huntington National Bank and Live Oak Bank plan to use generative AI from software company Casca to automate and expedite Small Business Administration 7(a) loans, with the aim of approving loans in just a day or two. Live Oak will launch Live Oak Express for 7(a) loans under $350,000, and Huntington plans to implement the software next year for various steps in the lending process.

SoFi Technologies is introducing a blockchain-powered remittance service that allows customers to send international payments directly through the SoFi app. Through a partnership with Lightspark, SoFi will enable users to convert US dollars into bitcoin, transfer the funds via the Bitcoin Lightning Network and then convert them into local currency for recipients. The service is set to launch first in Mexico.

Wyoming has introduced its own stablecoin, the Frontier Stable Token, becoming the first state to do so. The token, backed by dollars and short-term Treasurys, aims to allow for instant transactions. The launch follows the recent signing of a federal stablecoin regulation bill by President Donald Trump.

Federal authorities are continuing to pursue prosecutions related to alleged Paycheck Protection Program fraud, benefiting from extended statutes of limitations that allow cases to be filed through 2030 or 2031. Over 3,500 defendants have faced criminal charges in connection with pandemic-related fraud, with losses surpassing $2 billion. In addition to criminal cases, the Justice Department has seized over $1.4 billion in stolen relief funds and obtained hundreds of civil settlements and judgments.

Traders are increasingly positioning for a half-point rate cut by the Federal Reserve at its September meeting. The most notable position, at roughly $10 million, could yield $100 million if the Fed delivers a 50 basis-point reduction. "As the market readies for Powell's speech at Jackson Hole, we'll argue that the biggest risk for Treasuries is if the Fed Chief chooses to throw cold water on the widely anticipated September rate cut," Ian Lyngen, head of US rates strategy at BMO Capital Markets, said.

Bank and credit union leaders consider intelligent automation a key driver for growth, particularly in fraud detection and customer service, according to a an American Banker survey of 153 executives. Despite increased investment, major challenges remain, including data security concerns, compatibility with legacy systems, and resistance and company culture. The survey finds C-suite executives, especially those on the business side, have the most influence over automation decisions.

The Federal Deposit Insurance Corp. has proposed a rule that would update requirements for how banks display FDIC membership signage on digital platforms and ATMs. The proposal is aimed at addressing implementation challenges banks faced, with the goals of offering flexibility and reducing signage burdens.

Senate banking committee Chair Tim Scott, R-S.C., said he sees enough Democratic support to advance legislation that would restructure the cryptocurrency market. Republicans recently issued a discussion draft of the crypto market structure legislation, and Scott said he hopes the committee will move the bill forward next month.