The US Federal Reserve’s newest vice -president, who oversees Wall Street Banking, Michelle Bowman, gave a crypto speech on Tuesday that could have been pronounced by one of the industry’s own political winners, and advocates that the banks are getting behind the digital assets that are wavy and that bold gives the sector rules that do not get Crypto’s way.
At Wyoming Blockchain Symposium, Bowman warned banks that do not embrace the shift against crypto “will play a diminished role in the financial system more broadly,” and she further emphasized what has already been an obvious change in crypto mood from US banking regulators.
“Your industry has already experienced significant frictions with bank regulators that use unclear standards, conflicting guidance and inconsistent regulatory interpretations,” she said. “We need a clear, strategic legislative framework that will facilitate the adoption of new technology, acknowledging that in some cases it may be inadequate and inappropriate to use existing legislative guidance to tackle new tech.”
In March, President Donald Trump Bowman nominated to be elevated from a board of directors to the Vice -President’s role in supervision, and she was sworn around two months ago. She will occupy a leading role in the Fed’s Writing and Adoption of Rules for StableCecoins, which outlined by the guidance and establishment of national innovation for us stableecoins (Genius) ActionAnd her latest remarks show how much she is in line with the president to promote technology.
“Supervisory authorities must recognize the unique features of these new assets and distinguish them from traditional financial instruments or banking products,” Bowman said, advocating that the pending rules are tightly tailored to what the industry is doing and not a “worst case.”
Bowman treated active docking and said it can make transfers of ownership faster, mitigate “well -known risks” and make the process cheaper, and she said stableecoins are “positioned to become a luminaire in the financial system.”
“It is important that banks and regulators are open to engaging in new technologies and departing from an overly careful mindset,” she said.
The Vice -President also said that the agency “should consider giving Federal Reserve -staff the opportunity to keep the minimus volumes of crypto or other types of digital assets so that they can achieve a functioning understanding of the underlying functionality.”
“I certainly wouldn’t trust anyone to teach me how to ski if they had never taken skiing, no matter how many books and articles they’ve read or even written about it,” Bowman noted.
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