Federal Reserve Governor Michelle Bowman has urged U.S. regulators to abandon “overly cautious thinking” about cryptocurrencies, blockchain technology and artificial intelligence (AI).
Speaking at the Wyoming Blockchain Symposium, Bowman highlighted the need for a proactive approach to adapt to new technologies, and showed a departure from the more conservative attitudes of previous regulatory bodies.
Bowman advocates flexible surveillance
Bowman, who was appointed to the Federal Reserve Committee by President Donald Trump in 2018 and was appointed vice-chairman for the supervisor earlier this year. It is listed“Despite this past inertia, there is a change.”
She chose to embrace this change and emphasized the importance of creating a reliable and efficient regulatory framework. “We need to ensure safety and soundness while taking advantage of speed and efficiency,” she argued.
The choice is clear from a regulatory perspective. We can stay still and bypass traditional banking systems to new technologies or help shape the future.
An important topic for her address was recently passed Genius actadjust the stub coin. The law, signed into law by President Trump, puts stubcoins at the forefront of debate about the future of the financial system.
According to Bowman, dollar-covered cryptocurrencies can disrupt traditional payment infrastructure while offering new opportunities for the banking sector.
In addition to the discussion Stablecoin RegulationBowman revealed that he is working on a plan to adjust the bank’s regulatory commitments according to its size and complexity.
Crypto Monitoring Program Fed Cancellation
The Federal Reserve last week announced the cancellation of its “Novel Activities” supervision program, designed to monitor interactions with the bank’s cryptocurrency and fintech sectors.
The program, launched in 2023, faced criticism for imposing significant restrictions on banks engaged in digital assets. The Fed believes that such professional surveillance is no longer necessary, citing improved understanding of the associated risks and how banks can effectively manage these challenges.
As It has been reported By Bitconists, the central bank move is part of a broader effort to align with President Donald Trump’s vision to make America “global crypto capital.”
By incorporating digital asset surveillance into the traditional banking supervision framework, the Federal Reserve aims to promote an environment that supports innovation in the financial sector.
Speculation has also emerged about Bowman’s future role, with her name being mentioned as a possible successor to the current Fed Chairman Jerome Powell However, when his term ended in May 2026. However, in a recent interview with Bloomberg, she was distracted from questions about her aspirations for the position.
Governor Bowman’s remarks and the regulatory changes she advocates reflect a pivotal moment for the US financial landscape as regulators try to balance innovation with the need for safety and stability of the banking system.
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