Federal Reserve Vice Chair Advocates for Digital Asset Integration in Banking

Federal Reserve Vice Chair for Supervision Michelle Bowman has called for a regulatory overhaul to accommodate blockchain, tokenization, and AI in finance. The banking sector, once resistant to digital assets, is now pivoting toward integration as cryptocurrency adoption surges beyond projections.

Bowman criticized inconsistent regulatory interpretations and urged examiners to gain hands-on experience with digital assets to improve oversight. "We need a clear, strategic framework that facilitates emerging technology adoption," she stated, emphasizing that existing guidelines often fail to address innovation adequately.

The remarks signal a tectonic shift in regulatory posture as traditional financial institutions scramble to modernize. Central banks globally are laying groundwork to harness blockchain's efficiency gains while mitigating risks—a balancing act that could redefine financial inclusion.