Fed’s Top Banking Regulator Suggests Allowing Staff to Hold Crypto

Federal Reserve Vice Chair for Supervision Michelle Bowman proposed a potential shift in policy that WOULD permit central bank employees to hold small amounts of cryptocurrency. Speaking at the Wyoming Blockchain Symposium, Bowman framed the idea as a way to foster practical understanding of digital assets among staff, while acknowledging blockchain's potential to streamline financial processes.

The remarks signal a notable evolution in regulatory thinking, with Bowman emphasizing the need for legal frameworks to adapt alongside technological advancements. Tokenization could reduce friction in asset transfers, lower costs, and broaden access to capital markets, she noted. Legal observers view the comments as a potential harbinger of changing attitudes, though concerns linger about possible conflicts of interest.