Overview

• Michelle Bowman proposed allowing Federal Reserve employees to hold de minimis amounts of crypto to build practical expertise and improve examiner recruitment and retention.
• Bowman urged regulators and banks to move beyond an overly cautious posture and to engage with tokenization, blockchain and artificial intelligence based on both risks and benefits.
• She highlighted the Fed’s recent decision to end the Novel Activities Supervision Program and to fold digital-asset reviews into routine examinations.
• Bowman said she rescinded supervisory references to reputational risk to address concerns over banks denying services to lawful businesses.
• She said the Fed’s capital agenda remains focused on the stress capital buffer, GSIB surcharge, Basel III aligned with the 2017 agreement, and the supplemental leverage ratio, and she noted stablecoins have been pushed to the forefront by the GENIUS Act.