The U.S. Federal Reserve’s new vice chair in charge of Wall Street supervision has gotten the blockchain space excited over her alleged pro-crypto stance. Michelle Bowman recently spoke at the Wyoming Blockchain Symposium, where she said that banks that drag their feet on embracing digital assets risk being left behind. 

While this has caused a bit of a stir in the industry, it does make sense given the current trajectory of the asset class. While cryptocurrency was more of an underdog asset a decade ago, institutional support for it is as high as it has ever been. Tokens like Bitcoin have crossed the hundred thousand dollar mark, which was seen as an impossibility just a few years ago. There has been the approval of spot ETFs for several tokens, and the public seems more interested in digital assets than ever before. Because cryptos have proven to be so profitable, more investors are looking to resources to find the best crypto to buy.

As consumer demand only continues to rise, businesses that rush to fill it will reap the rewards. But, as Bowman explains, businesses that do not embrace cryptocurrency risk losing market share to their competitors. Besides the need for proactive attitudes towards cryptocurrency, Bowman also said that clearer rules regarding cryptocurrency use need to be implemented across the board. 

“We need a clear, strategic regulatory framework that will facilitate the adoption of new technology, recognizing that in some cases, it may be inadequate and inappropriate to apply existing regulatory guidance to address emerging tech,” she said.

This, naturally, triggered a lot of excitement within the industry from many who believe that this signals a positive attitude from the Federal Reserve towards cryptocurrency. It’s worth noting that Bowman was nominated by President Donald Trump, who has been famously pro-crypto since the days of his campaign.

It also comes amidst many regulatory developments that have benefited the crypto sector. We can’t forget about the GENIUS stablecoin act, which was passed only a few weeks ago, as well as the US government pushing for crypto use within state pensions.

These have not been universally praised, as even some crypto lovers have expressed concern, but nevertheless signal a change in attitude. Ironically, Bowman herself will play a role in creating laws to adhere to these new acts, so her pro-crypto stance has been even more celebrated. 

She also said during the symposium that regulators need to acknowledge the differences between cryptocurrency and traditional assets and thus tailor laws and practices to fit this. She also warned against taking a worst-case scenario approach to developing crypto laws and instead, work with the reality of what is on the ground. 

“It is essential that banks and regulators are open to engaging in new technologies and departing from an overly cautious mindset,” she said.

Also interesting was her insistence that regulators who are making decisions about the crypto industry should be people who hold a minimal amount of cryptocurrency at least. Her analogy was that she would not take skiing lessons from someone who had never skied, and thus, those with no exposure to the industry should not be making laws regarding it. This is ironic given that US President Donald Trump has been criticized for having exposure to cryptocurrency via his own tokens when promoting crypto laws.

In fact, one lawmaker put out a bill which would make it illegal for public office holders to release their own cryptocurrencies due to potential conflict of interest. Hopefully, Bowman’s comments will materialize in positive regulatory changes for the crypto sector.