{"id":866594,"date":"2025-08-20T21:13:11","date_gmt":"2025-08-21T02:13:11","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/20\/fed-top-official-urges-central-bank-staff-to-hold-de-minimus-crypto\/"},"modified":"2025-08-20T21:13:11","modified_gmt":"2025-08-21T02:13:11","slug":"fed-top-official-urges-central-bank-staff-to-hold-de-minimus-crypto","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/20\/fed-top-official-urges-central-bank-staff-to-hold-de-minimus-crypto\/","title":{"rendered":"Fed Top Official Urges Central Bank Staff to Hold \u2018de Minimus\u2019 Crypto"},"content":{"rendered":"
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Author<\/p>\n

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Sujha Sundararajan<\/p>\n

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Author<\/p>\n

\n Sujha Sundararajan <\/span>\n <\/p>\n<\/p><\/div>\n

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About Author<\/p>\n

Sujha has been recognised as ???? Women In Crypto 2024 ???? by BeInCrypto for her leadership in crypto journalism.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n

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Last updated:\u00a0<\/p>\n

\"Fed<\/p>\n

US Fed Vice Chair for Supervision Michelle Bowman has suggested allowing central bank staff to own small amounts of crypto.<\/p>\n

Speaking at a blockchain event in Wyoming<\/a> on Tuesday, she said that direct crypto exposure would help regulators better understand the underlying technology.<\/p>\n

\u201cOur approach should consider allowing Fed staff to hold de minimus amounts of crypto or other types of digital assets.\u201d<\/p>\n

Currently, the Federal Reserve does not allow its officials to hold or trade crypto. Effective 2022, the policymaking Federal Open Market Committee extended the ban to crypto<\/a> investments. However, Bowman\u2019s push might change the ownership rights for the reserve bank\u2019s staff.<\/p>\n

The Fed executive said that though there may be plenty of resources to learn about these assets, \u201cthere\u2019s no replacement for experimenting and understanding how that ownership and transfer process flows.\u201d<\/p>\n

\u201cI certainly wouldn\u2019t trust someone to teach me to ski if they\u2019d never put on skis, regardless of how many books and articles they have read, or even wrote, about it,\u201d she addressed at the conference.<\/p>\n

Further, allowing \u201cde minimus\u201d holdings of crypto would help the Fed attract and retain talent, she added.<\/p>\n

Bowman Emphasizes Regulators to Embrace Blockchain<\/span><\/h2>\n

Michelle Bowman urged regulators to embrace nascent tech like blockchain, or risk allowing it to bypass the traditional banking system altogether.<\/p>\n

She called regulators to shed what she described as an \u201coverly cautious mindset\u201d toward new technologies. <\/p>\n

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\u201cRegulators must understand new products and services and recognize the utility and necessity of embracing technology in the traditional financial sector.\u201d<\/p>\n<\/blockquote>\n

She also flagged risks that come from any rapid transformations, adding that they may be offset when benefits are considered.<\/p>\n

Besides, she highlighted several promising developments in banking, including tokenization of assets, which could solve problems in transferring ownership.<\/p>\n

\u201cTokenized assets enable a transferor to pass title without changing a custodian or moving any physical security or asset,\u201d the Fed vice chair said.<\/p>\n

Fed Executive Calls Industry to Help Regulators Better Understand Crypto<\/span><\/h2>\n

Bowman has further sought help from the crypto industry to educate regulators on blockchain and digital assets. Additionally, she would like to curtail regulatory scrutiny tied to reputational risk, suggesting framing new rules.<\/p>\n

\u201cI would also like to encourage the industry to engage with regulators to help us understand blockchain and its potential to solve other problems,\u201d she noted. \u201cChange is coming.\u201d<\/p>\n

If this isn\u2019t our approach, then we risk the banking system becoming less relevant to consumers and businesses, she added.<\/p>\n

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\n Joan Mongold<\/p>\n","protected":false},"excerpt":{"rendered":"

Author Sujha Sundararajan Author Sujha Sundararajan About Author Sujha has been recognised as ???? Women In Crypto 2024 ???? by BeInCrypto for her leadership in crypto journalism. Last updated:\u00a0 August 20, 2025 US Fed Vice Chair for Supervision Michelle Bowman has suggested allowing central bank staff to own small amounts of crypto. Speaking at a<\/p>\n","protected":false},"author":1,"featured_media":866595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[136,29332],"tags":[],"class_list":{"0":"post-866594","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-official","8":"category-urges"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/866594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=866594"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/866594\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/866595"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=866594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=866594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=866594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}