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2d ago

Fed’s Bowman Calls on Banks to Embrace Crypto, Proposes Allowing Staff to Hold Small Amounts

Global finance groups are urging the Basel Committee to delay 2026 crypto capital rules for recalibration.

Representations of cryptocurrencies are seen in this illustration created on August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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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Overview

  • Vice Chair for Supervision Michelle Bowman told the Wyoming Blockchain Symposium that banks and regulators should engage with crypto, blockchain and AI or risk a diminished role in finance.
  • Bowman suggested permitting Federal Reserve staff to hold de minimis amounts of digital assets to build practical expertise and improve supervision, without specifying amounts or products.
  • The Fed has ended its 2023 Novel Activities Supervision program and removed reputational-risk considerations from examinations, with oversight of emerging technologies returning to routine exams.
  • Bowman highlighted tokenization and stablecoins as near-term use cases, citing the GENIUS Act’s push for a stablecoin framework and calling for tailored rules that ensure consumer protection and competitiveness.
  • Major industry associations asked the Basel Committee to pause and revisit 2026 crypto standards seen as onerous, while Fed Governor Christopher Waller said there is “nothing scary” about using tokenization and smart contracts in payments.