The Federal Reserve’s top regulatory official, Michelle Bowman, believes that Fed staff should be allowed to invest in small amounts of crypto to understand the technology better. The Fed is working on a framework for supervising issuers of digital assets. Most Fed staffers are currently prohibited from owning crypto or related products.

Michelle Bowman argues that the investment restrictions could hinder recruitment and retention of examiners with necessary expertise. She urges the Fed to embrace new financial products and technology, stating that blockchain could change the banking system regardless of regulatory response. Bowman stresses the need for regulators to adapt to technology to ensure safety and soundness.

Bowman’s comments on allowing Fed staff to invest in crypto align with the Trump administration’s crypto-friendly stance. The Fed recently announced the end of a supervision program for crypto activities by banks set up under the Biden administration. Trump also issued an executive order to investigate claims of debanking in the crypto sector and among conservatives.

Read more at Cointelegraph: Fed Official Says Staff Should Be Allowed To Hold Crypto