U.S. Federal Reserve Vice Chair Advocates for Crypto Integration in Banking
Michelle Bowman, the U.S. Federal Reserve's new vice chair for supervision, delivered a speech advocating for banks to support the digital assets sector and for clearer regulatory frameworks for cryptocurrencies at the Wyoming Blockchain Symposium.
- Banks not embracing crypto may lose their relevance in the financial system.
- Bowman highlighted issues with current banking regulations affecting crypto: unclear standards and inconsistent interpretations.
- She called for a strategic regulatory framework tailored to emerging technologies.
- Bowman emphasized the importance of recognizing the unique characteristics of digital assets compared to traditional financial instruments.
- She discussed the benefits of asset tokenization and stablecoins, suggesting they could become integral to the financial system.
- Bowman proposed allowing Federal Reserve staff to hold limited amounts of crypto to better understand its functionality.