Federal Reserve Vice Chair Michelle Bowman proposed permitting staff to hold minimal amounts of cryptocurrency to improve understanding of digital assets.
Bowman's Cryptocurrency Proposal
During the Wyoming Blockchain Symposium on August 20, 2025, Michelle Bowman suggested allowing Federal Reserve employees to hold minimal amounts of cryptocurrency. She indicated that this could help enhance understanding of the risks and opportunities associated with these assets and attract skilled personnel. "Our approach should consider allowing Federal Reserve staff to hold de minimus amounts of crypto or other types of digital assets so they can better understand the risks and opportunities associated with these assets, and so we can attract and retain the talent necessary to effectively supervise innovative activities," stated Bowman.
Impact on Market Sentiment
Bowman's proposal could lead to a shift in regulatory policies regarding cryptocurrencies and may influence market sentiment, particularly towards major cryptocurrencies like Bitcoin and Ethereum. While specific details and timelines are not disclosed, this shift could position the Federal Reserve as more open to digital asset engagement, potentially affecting broader regulatory attitudes.
Bitcoin's Market Performance
As of now, Bitcoin's price stands at $113,233.35 with a market cap of $2.25 trillion. In the past 24 hours, it has seen a decline of 2.81%, although it has increased by 9.62% over the last 60 days. The 24-hour trading volume reached $68.38 billion, reflecting a -4.49% change. Bowman's proposal is anticipated to lead to broader adoption of crypto-friendly policies in financial regulation.
The proposal to allow Federal Reserve staff to hold cryptocurrency is viewed as a step towards more open and flexible regulation, potentially enhancing oversight capabilities in the innovative financial sector.
