The top regulator at the Federal Reserve has suggested that the US central bank’s staff should be allowed to invest in small amounts of crypto assets to improve their understanding of the technology.
Michelle Bowman, the Fed’s vice chairwoman for supervision, said at a blockchain event in Wyoming that regulators should consider such a move so that staff can understand the basics of how digital assets work.
She also said that they will soon establish a framework to ease ownership of such assets.
Currently, Fed employees and their family members are prohibited from owning crypto assets or related products, including exchange-traded funds and shares of crypto companies.
The ban was tightened in early 2022 after three top officials were found to have engaged in unusual trading activities in 2020, when the Fed implemented support measures for the US economy at the beginning of the COVID-19 pandemic.
Bowman said the tight restrictions could make it harder for the Fed to attract and retain examiners with expertise in crypto.
She believes the easing of regulations will help staff better understand the technology.
