Catenaa, Thursday, August 21, 2025- Federal Reserve Vice Chair for Supervision Michelle Bowman proposed allowing central bank staff to hold small amounts of cryptocurrency to gain practical understanding of digital assets, signaling a potential shift in US regulatory culture.
Bowman made the remarks Tuesday at the Wyoming Blockchain Symposium in Jackson Hole, emphasizing blockchain’s role in reducing friction in asset transfers and the need for legal frameworks to evolve alongside technology.
Bowman suggested that permitting staff to hold “de minimus amounts” of crypto or other digital assets could help regulators better assess risks and operations within financial markets.
She framed the proposal as part of broader efforts to balance technical adoption with regulatory oversight, noting that blockchain technologies can streamline ownership transfers, lower costs, and expand access to capital markets.
Legal and policy experts see Bowman’s comments as indicative of a more open regulatory stance. Vincent Liu, CIO at Kronos Research, said the approach moves the Fed “from caution to curiosity,” prioritizing practical understanding over strict avoidance.
Public affairs attorney Andrew Rossow highlighted that while the shift could improve oversight, it raises potential conflict-of-interest concerns, requiring robust legal and ethical safeguards.
The proposal coincides with ongoing debates over US cryptocurrency policy, including President Donald Trump’s efforts to influence Federal Reserve operations.
Bowman’s remarks come after the Fed recently ended a supervisory program monitoring U.S. banks’ crypto activity, reflecting an evolving stance toward digital assets and their integration into traditional financial systems.
