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1h ago

Fed Supervision Chief Bowman Sets Pro‑Innovation Course, Proposes Letting Staff Hold Small Crypto

The proposal signals a move to engage with digital assets through regular supervision rather than stand‑off caution.

Vice Chair for Supervision of the Federal Reserve Board of Governors Michelle W. Bowman moderates a discussion with OpenAI CEO Sam Altman (not pictured) during the Federal Reserve's Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C., U.S., July 22, 2025. REUTERS/Ken Cedeno
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U.s. federal reserve's new supervision chief sold on bringing crypto to finance
Photo: Andrew Harrer

Overview

  • In Aug. 19 remarks in Wyoming, Michelle Bowman urged regulators and banks to move past an overly cautious mindset and help shape durable rules for emerging finance technologies.
  • She disclosed that the Fed removed reputational‑risk considerations from supervision in late June and said exam manuals are being updated to cement that policy.
  • The central bank ended its 2023 Novel Activities Supervision Program and will reintegrate those reviews into Reserve Bank examination teams as part of routine oversight.
  • Bowman proposed allowing de minimis crypto holdings by Fed staff to build practical expertise and aid examiner recruitment, a step legal observers warn would require strong conflict‑of‑interest safeguards.
  • She pointed to tokenization and stablecoins—boosted by the GENIUS Act—as avenues to cut costs and broaden access, while emphasizing consumer protection, AML obligations and U.S. competitiveness.