Michelle Bowman, the newly appointed vice chair for supervision at the Federal Reserve, advocates for a shift in the regulatory approach towards the crypto industry. She believes the Fed must move away from an overly cautious mindset to foster innovation. In her recent pro-crypto speech, Bowman emphasized the need for a clear regulatory framework that recognizes the unique features of digital assets, such as stablecoins, and helps banks adapt to the ongoing digital transition. She warned that banks not embracing crypto will diminish their significance in the financial system. Additionally, Bowman suggested allowing Federal Reserve employees to hold small amounts of crypto assets to enhance their understanding of the technology. Her position will influence the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signaling a regulatory strategy that aligns with industry needs. She argues that existing regulations may not suit the emerging technology effectively.

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