Federal Reserve regulatory officials are not only urging you to get on board, but they also want to personally engage—this unprecedented reversal in regulatory attitude will lead cryptocurrency to what direction?
Michelle Bowman, the vice chair responsible for bank regulation at the Federal Reserve, directly proposed allowing Fed employees to hold 'very small amounts' of cryptocurrency! This means that Fed regulators will understand the market through personal investment, fundamentally changing the previously detached regulatory stance.
Regulatory upheaval: Conservatives shift to embrace crypto.
Bowman unreservedly criticized the regulators' past 'overly cautious mindset' at a blockchain seminar in Wyoming, calling for proactive collaboration with financial institutions to adapt to technological changes.
She clearly pointed out that the regulators are at a crossroads: either embrace change and help establish a reliable and lasting framework; or remain stagnant, allowing new technologies to completely bypass the traditional banking system.
This is not an isolated signal. The Federal Reserve just announced the halt of the regulatory project aimed at enhancing bank participation in cryptocurrency activities launched during the Biden administration, integrating cryptocurrency regulation into the regular regulatory process.
True intention: Why the sudden shift in attitude at this moment?
The Trump administration's ambition to make the U.S. the 'global cryptocurrency capital' is evident. Since Trump took office, the Federal Reserve has gradually retreated from its hardline stance on crypto assets, aligning its approach with other banking regulators.
More importantly, the (GENIUS Act) has passed, establishing a comprehensive framework for stablecoin regulation and opening the door for institutional investment and applications. The clarity of regulation has removed obstacles for large-scale capital entry.
Bowman's name has been mentioned multiple times as a potential successor after current Federal Reserve Chairman Powell's term ends in May 2026. Her statements may signal the future policy direction of the Fed.
Capital flood: $7 trillion in off-market funds are eyeing closely.
Coinbase's latest monthly outlook indicates that the size of U.S. money market funds has reached $7.2 trillion, setting a historical record. As the Fed approaches rate cuts in September and October, the attractiveness of these funds will begin to diminish.
A large influx of capital is expected to flow into higher-risk asset classes like cryptocurrency. Even a 1% allocation ratio means an additional $72 billion entering the market, enough to create huge waves.
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