Federal Reserve Vice Chair for Supervision Michelle Bowman announced a major policy shift supporting digital assets at the Wyoming Blockchain Symposium on August 19. She confirmed that reputational risk considerations were removed from bank supervision in June, clearing a path for financial institutions to work with crypto firms engaged in legal activities without fear of regulatory penalties.

Bowman unveiled a four-principle framework to guide the Fed’s new approach: regulatory certainty, tailored rules, consumer protection, and boosting U.S. competitiveness. She stressed that crypto companies should not be driven away by unclear oversight, and banks should have the freedom to serve lawful businesses. The policy aims to integrate blockchain into traditional finance while safeguarding compliance and consumer rights.

Highlighting blockchain’s potential to reduce costs and settlement risks, Bowman urged greater collaboration between regulators and industry leaders. She warned that without clear rules, innovation could bypass the banking system, threatening its long-term relevance in global finance.

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