U.S. Federal Reserve considers allowing employees to hold crypto

Michelle Bowman, Vice Chair for Supervision at the U.S. Federal Reserve, said the institution should consider easing restrictions that currently prevent employees from holding cryptocurrencies. The statement was made on Tuesday during a blockchain-focused event in Wyoming.

Currently, Federal Reserve staff and their spouses are prohibited from investing in cryptocurrencies, exchange-traded funds focused on digital assets, or shares of companies in the crypto sector. These strict rules were introduced in 2022, after three senior officials were involved in controversial trading activities in 2020, during the economic support measures adopted in the early stages of the COVID-19 pandemic.

Bowman argued that allowing minimal investments could help staff gain a better understanding of blockchain technology and digital asset transfers. She also emphasized that the current restrictions may hinder the recruitment and retention of experts in the crypto field.

The official noted that the Federal Reserve plans to establish a framework for overseeing digital asset issuers, stressing that practical experience may be essential for understanding the underlying technological mechanisms.