A top U.S. Federal Reserve official has called for a major shift in policy, suggesting that Fed staff should be allowed to hold small amounts of cryptocurrency to better understand the technology. Vice Chair for Supervision Michelle Bowman made the remarks at a blockchain event in Wyoming, arguing that direct exposure could improve oversight and innovation.

Bowman said staff should be able to invest “minimal amounts of crypto or other digital assets” to gain hands-on knowledge of how ownership and transfers work. She stressed that regulators will soon establish a framework for supervising issuers of digital assets and that personal experience would help shape smarter rules. Currently, most Fed employees and their spouses are banned from owning crypto or related financial products, following stricter investment rules introduced in 2022 after controversial trades by senior officials during the pandemic.

Bowman argued that the ban could hurt recruitment, making it harder to attract examiners with relevant expertise. “I wouldn’t trust someone to teach me to ski if they’d never put on skis,” she said, adding that regulators must avoid an “overly cautious mindset” toward emerging technology.

She warned that blockchain could transform banking with or without regulators’ involvement, urging the Fed to embrace change rather than risk being bypassed. While acknowledging risks, she said potential benefits like speed, efficiency, and innovation outweighed them if managed properly.

Her comments follow a series of crypto-friendly moves under the Trump administration, including the Fed’s decision to end a Biden-era supervision program on crypto activities and a new executive order directing regulators to review claims of debanking in the sector.