U.S. Federal Reserve's New Supervision Chief Sold on Bringing Crypto to Finance

The Fed vice seat who leads banking oversight, Michelle Bowman, comes crossed arsenic a crypto evangelist arsenic she echoes manufacture views connected its regulatory needs.

Aug 19, 2025, 7:40 p.m.

The U.S. Federal Reserve's newest vice seat who supervises Wall Street banking, Michelle Bowman, made a crypto code connected Tuesday that could person been uttered by 1 of the industry's ain argumentation wonks, advocating that banks get down the integer assets surge and that the Fed springiness the assemblage rules that won't get successful crypto's way.

At the Wyoming Blockchain Symposium, Bowman warned banks that don't clasp the displacement toward crypto "will play a diminished relation successful the fiscal strategy much broadly," and she further underlined what's already been an evident alteration successful crypto sentiment from U.S. banking regulators.

"Your manufacture has already experienced important frictions with slope regulators applying unclear standards, conflicting guidance, and inconsistent regulatory interpretations," she said. "We request a clear, strategical regulatory model that volition facilitate the adoption of caller technology, recognizing that successful immoderate cases, it whitethorn beryllium inadequate and inappropriate to use existing regulatory guidance to code emerging tech."

In March, President Donald Trump nominated Bowman to beryllium elevated from a committee spot to the relation of vice seat for supervision, and she was sworn in astir 2 months ago. She'll inhabit a starring relation successful the Fed's penning and adoption of rules for stablecoins, arsenic outlined by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and her latest remarks amusement however overmuch she's aligned with the president connected fostering the technology.

"Regulators indispensable admit the unsocial features of these caller assets and separate them from accepted fiscal instruments oregon banking products," Bowman said, advocating that the pending rules beryllium intimately tailored to what the manufacture is doing and not a "worst-case scenario."

Bowman addressed plus tokenization, saying it tin marque transfers of ownership faster, mitigate "well-known risks" and marque the process cheaper, and she said stablecoins are "positioned to go a fixture successful the fiscal system." 

"It is indispensable that banks and regulators are unfastened to engaging successful caller technologies and departing from an overly cautious mindset," she said.

The vice seat besides said the bureau "should see allowing Federal Reserve unit to clasp de minimus amounts of crypto oregon different types of integer assets truthful they tin execute a moving knowing of the underlying functionality."

"I surely wouldn't spot idiosyncratic to thatch maine to skis if they'd ne'er enactment connected skis, careless of however galore books and articles they person read, oregon adjacent wrote, astir it," Bowman remarked.

Read More: U.S. Federal Reserve's New Supervision Chief Will Wield Crypto Authority

Jesse Hamilton

Ripple’s Global Co-Head of Policy connected Four Best Practices for Digital Asset Custody

Ripple distills a Singapore store into 4 custody champion practices: compliance by design, tailored models, operational resilience and governance.