Fed Board Member Michelle Bowman has announced significant changes in banking regulations, highlighting a shift in approach to cryptocurrency oversight. Bowman emphasized that banks should no longer discriminate against customers based on factors like business model or political views. He removed supervisory guidelines that had previously restricted bank acceptance of specific customer types. sequently, the Fed disbanded its innovation oversight group dedicated to exploring cryptocurrencies and transferred this expertise directly to regional Fed bank review teams. Bowman’s comments suggest a move towards regulating digital assets within a legal framework both inside and outside the banking system. He encouraged industry collaboration with regulators to understand blockchain technology and its potential applications. In addition, Bowman spoke about changes to capital regulations. A new proposal for supplementary leverage ratio (SLR) aims to support, rather than restrict, banks’ ability to operate in the Treasury market. Further aligning with international standards, Bowman also mentioned the US intends to adopt Basel III compliance process. Lastly, Bowman addressed criticism regarding the US regulatory structure, stating that current multi-headed system is necessary for both national and state banks, and any potential changes can be made only through Congress. This article is not investment advice.