The most recent vice-president of the American federal reserve which oversees Wall Street Banking, Michelle Bowman, delivered a crypto speech on Tuesday that could have been made by one of the own political factors in the industry, advocating that banks are put behind the push of digital assets and that the Fed gives the rules of the sector that do not obtain crypto.
At Wyoming Blockchain Symposium, Bowman warned banks that do not adopt change to crypto “will play a reduced role in the financial system more widely”, and it has also stressed what has already been an obvious change in the feeling of crypto of American banking regulators.
“Your industry has already experienced significant friction with bank regulators applying unclear standards, contradictory advice and inconsistent regulatory interpretations,” she said. “We need a clear strategic regulatory framework that will facilitate the adoption of new technologies, recognizing that in some cases, it may be inappropriate and inappropriate to apply existing regulatory orientations to tackle emerging technology.”
In March, President Donald Trump appointed Bowman to be raised by a seat of the board of directors to the role of vice-president of supervision, and was sworn in about two months ago. It will occupy a leading role in writing and adopting the Fed rules for stablecoins, as Described by the guidance and the establishment of national innovation for the American stablescoins (GENIUS) ActAnd her latest remarks show how much she is aligned with the president on the promotion of technology.
“Regulators must recognize the unique characteristics of these new assets and distinguish them from traditional financial instruments or banking products,” said Bowman, recommending that waiting rules are closely adapted to what industry does and not a “worst case”.
Bowman approached the tokenization of assets, saying that it can make ownership transfers more quickly, mitigate the “well -known risks” and make the process cheaper, and it said that stabblecoins are “positioned to become an element of the financial system”.
“It is essential that banks and regulators are open to engage in new technologies and to leave a state of mind too cautious,” she said.
The vice-president also said that the agency “should consider allowing the staff of the federal reserve to hold quantities of crypto or other types of digital assets so that it can achieve a work understanding of the underlying features”.
“I would certainly not trust someone to teach me to ski if they never put skis, regardless of the number of books and articles they have read, or even wrote on this subject,” said Bowman.
Read more: the new supervision chief of the American federal reserve will exercise cryptographic authority
