While Bowman did not specify limits on holdings, she indicated that "de minimis" investments could enhance staff insight, recruitment, and retention of expert examiners. Her remarks reflect a more supportive regulatory tone under the Trump administration toward cryptocurrency, in contrast to earlier skepticism. She criticized bank regulators’ historically cautious mindset, warning that resistance to innovation could sideline traditional banks.
Bowman acknowledged potential risks but urged regulators to also consider the substantial benefits of emerging technologies. She advocated for proactive engagement and developing a strong framework to integrate crypto into the financial system safely and efficiently.
In related developments, Tether, the world's leading stablecoin issuer, has appointed Bo Hines, former executive director of the White House Crypto Council under Donald Trump, as strategic adviser for digital assets and U.S. strategy. This move comes as Tether seeks to strengthen its presence in the U.S. and comply with new regulatory frameworks, particularly following the passage of the Genius Act, which mandates stablecoin issuers to fully back their tokens with assets like U.S. Treasuries and regularly disclose reserves.
Additionally, a coalition of finance industry bodies is urging the Basel Committee on Banking Supervision to reconsider its upcoming crypto asset standards for banks, set to take effect in January 2026. The groups argue that the crypto market has evolved since the introduction of these rules in 2022 and label the standards as overly conservative and economically unviable for banks. They suggest reevaluating the standards with updated data.
These developments highlight a significant shift in the regulatory landscape, with increased engagement and adaptation to the evolving cryptocurrency market. As the sector continues to mature, both regulatory bodies and industry leaders are working to establish frameworks that balance innovation with risk management.
