Remarks by Under Secretary for Domestic Finance Nellie Liang “Modernizing the Regulatory Framework for Domestic Payments” at the Chicago Payments Symposium, hosted by the Federal Reserve Bank of Chicago

I. IntroductionGood afternoon and thank you to the Federal Reserve Bank of Chicago for hosting this event and inviting me to speak. Two years ago, Treasury published a report called The Future of Money and Payments in light of the changing landscape of money and payments.[i] Since then, we have continued to evaluate the potential benefits and risks of new technologies, both fast payment systems and tokenization, and new use cases, including cross-border payments initiatives.[ii] Today, I would like to focus on another aspect of the report – the recommendation to develop a federal regulatory framework for domestic payments.In the past few years, we have seen rapid growth in digital payments and development of new payments infrastructure.