Fed’s Bowman Backs Limited Crypto Ownership for Staff to Strengthen Oversight

Federal Reserve Governor Michelle Bowman has called for central bank examiners to be allowed to hold small amounts of cryptocurrency, arguing that direct experience could sharpen regulatory oversight at a time when digital assets are becoming increasingly relevant to the financial system.

Speaking at a blockchain conference in Wyoming, Bowman said that exposure to the mechanics of crypto ownership—such as making transfers, navigating wallets, and understanding transaction flows—would provide regulators with practical insight that academic study alone cannot offer. To underscore her point, she compared it to learning a skill like skiing, saying that no one would trust an instructor who had never put on skis.

The Fed currently prohibits its staff from owning cryptocurrencies, a restriction designed to avoid conflicts of interest as regulators oversee institutions engaging with digital assets. Bowman’s proposal, however, stops short of suggesting large-scale investments. Instead, she advocated for permitting only “de minimis” amounts—holdings small enough to avoid any potential conflict but sufficient to give staff first-hand familiarity with the asset class.

While Bowman did not specify what such a threshold might look like, she emphasized that the ability to hold even nominal amounts of crypto could help the Fed attract and retain staff with the expertise necessary to monitor a rapidly evolving sector. She also cautioned against an overly skeptical approach to digital innovation, warning that regulators risk leaving banks and financial institutions behind if they dismiss crypto entirely. In her view, effective oversight will require a framework that balances safety and soundness with efficiency and speed.

Her comments reflect a broader shift in tone under the Trump administration, which has taken a more open stance toward digital assets compared to earlier years of regulatory caution. For markets, Bowman’s remarks signal that the Fed is beginning to view practical engagement with crypto not as a threat, but as a necessary step toward stronger, more informed regulation.