Fed Official Proposes Crypto Holding Policy Change for Staff

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, has proposed allowing Fed staff to hold limited crypto assets, potentially signaling a shift in regulatory approach. This proposal is part of an effort to establish a clear regulatory framework for cryptocurrency integration within the financial system. While immediate market impacts are minimal, this policy change could significantly influence the perception and adoption of Bitcoin and Ethereum. The move reflects Bowman’s commitment to innovation in banking and represents a departure from existing restrictions on digital asset holdings.