The vice-president of supervision of the supervision, Michelle Bowman, called for an examination of the restrictions of the federal reserve which prohibit the staff to hold a cryptocurrency, pleading for a policy which would allow them to have “minimus” quantities of digital assets. This change, she argued during a blockchain event in Wyoming, would allow Fed employees to develop a practical understanding of the technology they are responsible for regulating. “There is no replacement to experiment and understand how this process of property and transfer is circulating,” she said, comparing the need for practical knowledge to learn to ski someone who has never skied.
Currently, Fed staff and their spouses are prevented from having crypto or related products, including ETFs and actions in crypto companies, a tight policy at the beginning of 2022 after revelations of questionable negotiation activities by three senior officials during the pandemic. Bowman recognized the need for conflict of interest guarantees, but stressed that current rules could hinder recruitment and limit expertise as digital assets become greater in the financial sector.
Bowman also urged regulators to go beyond what she described as a “too careful state of mind” and to adopt emerging technologies like blockchain. She warned that an excessive skepticism could leave behind traditional financial systems. “Technology could change the banking system, whatever the banks and regulators choose to respond,” she said, highlighting the potential for the technology of the big book distributed to revolutionize finance.
The Fed’s regulatory position seems to evolve under the Trump administration, which has adopted a more favorable approach to the crypto. Recently, the FED announced that it would end a supervision program for banking activities linked to the blockchain established as part of the Biden administration. Meanwhile, Trump has signed an executive decree ordering regulators to investigate the allegations of “speaking” by the cryptography sector and the conservative groups.
Bowman’s comments correspond to the launch of the American Innovation Project (AIP), a non -profit initiative aimed at filling the gap between decision -makers and the digital asset industry. The group, supported by major players as JammingKraken, and the digital currency group, focuses on promoting bipartite dialogue and education on emerging technologies. Kristin Smith, president of the Solara Policy Institute and a key figure in the Crypto political landscape, leads the AIP board of directors.
Bowman has also encouraged cryptographic industry to help regulators understand blockchain and its potential applications. She stressed the importance of collaboration to shape a regulatory framework that balances innovation with risk management. While the industry continues to grow, regulators are faced with the challenge of ensuring safety and solidity while adopting the efficiency and speed that digital assets offer.
Bowman’s remarks were pronounced at the Wyoming Blockchain symposium, where other notable figures in the financial and cryptographic sectors were also present. Among them, the president of the Senate banking committee, Tim Scott, who described plans for new legislative efforts, and the president of the SEC, Paul Atkins, who referred to a potential change in the approach of the agency on digital assets.
Source: (1) US Fed Official: Staff Should be Allowed to Hold a Little Crypto ((2) Fed Official Pushes to Let Staff Own Small Amant of Crypto ((3) Fed Official Urges Central Bank Staff to Hold ‘de Minimus’ … ((4) New Crypto Advocacy Group Summit ((5) American Innovation Initiative Kicks Off at Wyoming … (
