A top US bank regulator says the Federal Reserve should consider letting some of its own employees hold small amounts of crypto. In remarks on August 19 at the Wyoming Blockchain Symposium, Fed Vice Chair for Supervision Michelle Bowman argued that “de minimis” personal holdings could help examiners and staff understand the technology they oversee—without compromising ethics.
What Bowman actually said
Bowman told attendees that limited, personal exposure to digital assets would build hands‑on familiarity with how wallets, transfers, and custody work. She did not propose specific limits or timelines, but framed the idea as a practical way to improve policymaking and supervision. Reuters, summarizing her prepared remarks, said she suggested allowing staff to own “small amounts of crypto products” to develop a “working understanding” and aid recruitment of tech‑savvy examiners.
The rule today: Strict bans for senior officials
Current Fed ethics rules are tight: senior officials involved in monetary policy are prohibited from investing in cryptocurrencies (along with individual bonds, commodities, foreign currencies, and derivatives). Those restrictions sit inside the FOMC’s investment policy and the Board’s public ethics framework. Bowman's suggestion would not change those rules automatically; any shift would need to be crafted to avoid conflicts and preserve public trust.
A shifting policy backdrop
Bowman’s comments land amid a broader rethink of how bank regulators treat crypto and other “novel activities.”
On June 23. the Fed said reputational risk would no longer be a stand‑alone component in bank examinations—part of a push to focus on concrete, financial risk.
On August 15. the Fed ended its Novel Activities Supervision Program, which had subjected crypto‑related banking activities to extra oversight since 2023.
The White House on August 7 issued an executive order on “debanking,” directing financial regulators to curb politically or religiously motivated denial of financial services and to review past practices. That order explicitly steers agencies away from using amorphous “reputation risk” as a basis for supervisory pressure.
Against that backdrop, Bowman also said the Fed will “soon be establishing a framework for supervising issuers of these assets,” signaling more clarity ahead for stablecoin and digital‑asset oversight.
Why this matters
A narrowly tailored de minimis allowance could make it easier for examiners to speak the same language as the firms they supervise—without opening the door to undue influence. That said, the Fed’s ethics regime is designed to avoid even the appearance of conflicts. Any policy the Board considers would have to set clear dollar caps, disclosure rules, blackout periods, and eligibility (e.g., excluding covered monetary‑policy officials).
The crypto policy arc
Bowman’s remarks fit a broader trend toward integrating digital assets into the regulated financial system rather than pushing them to the periphery. They follow the enactment this summer of the GENIUS Act, a new federal stablecoin law that sets guardrails for issuers and points toward a more formal supervisory role for banking agencies. Her call for staff to get limited, practical exposure adds a micro‑level complement to those macro‑level changes.
What to watch next
Whether the Board proposes a formal ethics carve‑out spelling out who could hold crypto, how much, and what controls (disclosure, pre‑clearance, holding periods) would apply.
Details of the Fed’s forthcoming supervisory framework for crypto/stablecoin issuers, and how it meshes with the new federal law.
How agencies interpret the debanking order in exams and enforcement—and whether banks respond by revising crypto risk policies.
Conclusion
Bowman isn’t pushing for a crypto free‑for‑all inside the central bank. She’s suggesting a small, controlled exception to help the Fed regulate from a position of informed competence. With reputational‑risk guidance pared back, a major stablecoin law on the books, and a pledge to define oversight of issuers, the policy direction is clear: bring crypto activity under durable, risk‑based supervision—starting with better‑informed supervisors.
