Federal Reserve Calls for Innovation in Financial Sector Amidst Technological Advancements

The Federal Reserve is promoting the adoption of cryptocurrencies and artificial intelligence (AI) in the financial sector, signaling a potential shift in U.S. policy towards embracing innovation. Fed Governor Michelle Bowman emphasized the urgent need for regulatory bodies to align with these emerging technologies during a speech on August 19, 2025. Her call to action focuses on fostering collaboration between banks and tech developers to enhance understanding of blockchain technology while mitigating fraud risks.