Michelle W. Bowman, new vice president of oversight for the Federal Reserve (Fed) system, says that clarity in oversight of digital assets will be one of the management’s priorities.
Bowman issued these statements during his first public speech as vice president on June 6, after officially assuming positions after being confirmed by the US Senate as central bank regulations.
In her speech, the new official spoke about the initiative she plans to implement within the Fed. Modernize bank supervision and regulations.
He spoke specifically about solving the uncertainty that exists around Bitcoin (BTC) and other cryptocurrency regulations and their use within bank entities.
He emphasized that the evolution of supervision guidelines must provide clearer expectations to promote the safe adoption of activities related to digital assets and artificial intelligence, particularly for banks exploring new financial technologies.
In that sense, the authorities believe that the supervision guidelines previously applied have It created many problems.
The uncertainty in supervision’s expectations has long been a hindrance for banks seeking to innovate, such as banks participating in digital asset activities and banks that incorporate new technologies such as artificial intelligence to improve the efficiency of their products and services.
Michelle W. Bowman, Vice President of Federal Reserve Manager.
Officials who have served as governor on the Federal Commission since 2018 say the Federal Reserve must ensure that innovation in digital assets is not covered by inaccurate or outdated oversight.
As a result, he has pledged to review existing guidelines. Includes SR Letter (Supervisory requirements), this is a regulatory document issued by the Fed to provide guidelines to banks regarding the use of cryptocurrency.
Bowman also reviews third party risk management protocols to eliminate documents that hinder the adoption of cryptocurrency.
Therefore, it is expected that the official will support it Reform to supervisory standards It applies living things. This contrasts with his predecessor, Michael Burr, who resigned last January before Donald Trump took over the presidency.
His departure opened the door to the arrival of a new bank supervisor appointed by Trump.
The Bowman designation was part of a strategy to place people related to cryptocurrency. A key position in the US public institutions, To promote new and favorable regulations on ecosystems.
It is a key movement currently encompassing the country’s central bank, particularly amidst the clash between Trump and federal government president Jerome Powell.
Analysts say new officials are also expected to point out the flexibility of leverage standards for large banks and the deployment of simpler capital standards for large companies.
