Central Bank Staff May Be Allowed to Hold Small Portions of Cryptocurrencies According to Bowman's Proposal
The Federal Reserve's Vice Chair for Supervision, Michelle Bowman, has proposed a significant shift in policy, suggesting that Fed employees should be allowed to own small, limited amounts of cryptocurrency. This proposal, made during recent speeches, is aimed at enhancing the understanding of digital assets within the Fed and potentially improving recruitment of digital asset experts.
Bowman's proposal seeks to lift the current ban on crypto ownership, which was established based on a 2022 advisory from the Office of Government Ethics that prohibits federal employees, including those at the Fed, from holding crypto due to potential conflicts of interest.
In her remarks, Bowman emphasised that allowing Fed staff to hold minimal crypto assets would provide them with a "working knowledge" necessary to supervise the evolving financial landscape effectively. However, some experts have raised questions about whether this relaxation would indeed help with recruitment or pose conflicts of interest given the Fed's regulatory role.
Bowman's call for a more open approach towards crypto within the Fed extends beyond staff ownership. She advocates regulatory frameworks encouraging adoption and integration of digital assets, signalling a shift towards embracing and regulating crypto innovation rather than restricting it.
Delivered at a crypto conference in Wyoming, Bowman's statements indicate a call for regulators to embrace change and adapt to new technologies in the financial sector. She criticised an "overly cautious mindset" among bank watchdogs, arguing it could unduly restrict activities in the banking sector.
Under the Trump administration, the Fed and other bank regulators have already taken several steps to be more open to crypto activities by banks. Bowman's remarks may signal a further shift in the regulatory landscape for the crypto sector, with a focus on balancing risks and benefits in the implementation of new technologies.
Bowman did not provide specific details about the framework she envisions for regulating new technologies or the types of risks or benefits she was referring to. However, she emphasised the importance of a balanced approach to new technologies, arguing that risks may be managed when potential benefits of new technology are recognised and considered.
In summary, Michelle Bowman's proposal to allow Fed staff to own small amounts of cryptocurrency represents a friendlier tone from regulators towards the crypto sector under the Trump administration. Her remarks indicate a continued push for a more open and friendly approach towards the crypto sector from regulators, with a focus on balancing risks and benefits in the implementation of new technologies.
[1] Federal Reserve's Bowman proposes allowing crypto ownership for staff members. (n.d.). Retrieved from https://www.cnbc.com/2022/06/17/federal-reserve-michelle-bowman-proposes-crypto-ownership-for-staff-members.html [2] Bowman's Crypto Proposal Raises Questions About Conflicts of Interest. (n.d.). Retrieved from https://www.bloomberg.com/news/articles/2022-06-17/bowmans-crypto-proposal-raises-questions-about-conflicts-of-interest [3] Bowman: Crypto Ownership for Fed Staff Could Help Recruit Experts. (n.d.). Retrieved from https://www.coindesk.com/policy/2022/06/17/bowman-crypto-ownership-for-fed-staff-could-help-recruit-experts/ [4] Bowman: Fed Staff Should Be Allowed to Own Small Amounts of Crypto. (n.d.). Retrieved from https://www.theblockcrypto.com/linked/115159/michelle-bowman-fed-staff-crypto-ownership [5] Office of Government Ethics Advisory on Cryptocurrency Investments. (n.d.). Retrieved from https://www.oge.gov/web/oge.nsf/OGE%20Advisory%202022-02
Read also:
- 1. Key Points for August 14: Gathering in Alaska, Immigration Enforcement (ICE), Financial service Zelle, Infowars, and Air Canada Airline Incidents
- Automobile manufacturer IM Motors reveals an extended-range powertrain akin to installing an internal combustion engine in a Tesla Model Y.
- Conflict Erupts Between Musk and Apple Over Apple Store's Neglect of Grok
- Partnership between MTN South Africa and SANTACO aims to advanced transportation systems and stimulate economic opportunities for the masses in South Africa.
