The leading regulation of the Federal Reserve said staff from the US central bank should be allowed to invest a small amount in crypto to help them understand the technology.
Fed Vice Chair for Administration Michelle Bowman Says At a Blockchain event in Wyoming on Tuesday that the regulator should consider allowing its staff to “handle the amount of crypto or other types of digital ownership so that they can achieve a working understanding of the underlying operation.”
“We are about to establish a plot for the administration of these owners,” he added.
“There is no replacement for experimenting and understanding how the process of owner and movement flows.”
Currently, most Fed staff and their wives are prohibited from crypto -owned or crypto -focused products, such as Funds exchanged by exchange or sharing with crypto companies.
The FED has tightened its policies on all investments in early 2022 after it disclosed that three top officers were unusual trading activity in 2020, as regulator Act To support the US economy in the early days of Covid-19 pandemia.
Authorization in crypto can help recruit, deciding
Bowman said Fed staff’s investment restrictions can be a hindrance to recruiting and maintaining reviewers with the necessary expertise, “and removing policies will help existing staff understand technology.
“I definitely won’t trust someone to teach me to be on if they never wear skis, no matter how many books and articles they read, or write, about it.”
Bowman urges not to “stand still”
In his speech, Bowman said the bank’s regulators had “very careful thinking” and encouraged them less in doubt about new financial products and “recognizing the utility and need for technology to embrace the traditional financial sector.”
He said some banks are concerned that blockchain technology is threatening the traditional business models, but that technology can “change the banking system even how banks and regulators choose to respond.”
“We should choose whether to embrace the change and help that shapes a framework that will be reliable and durable – ensuring safety and well -being and incorporate the benefits of both efficiency and speed – or stand up and allow new technology to miss the traditional banking system,” he added.
“From the perspective of a regulator, the choice is clear.”
Related: Crypto’s new advocacy group debut at Wyoming Summit
Bowman said he recognized the dangers of adopting new technology, but those who could be offset or “at least referred to as managed when we recognize and consider the potential extensive benefit of the new technology.”
Trump’s crypto-friendly pushing
Bowman did not specify the types of crypto products or what amount he suggests that the Fed has allowed, but his comments are the latest crypto friendly comments taken under the Trump administration.
On Friday, Fed said finish a program of administration For activities associated with crypto and blockchain conducted by banks, set by the Biden administration in 2023.
Trump also signed up an executive order Earlier this month directing banking regulators to investigate the claims of debanking made by the crypto sector and conservatives.
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