Speaking at the Wyoming Blockchain Symposium, she urged institutions to embrace innovation as regulators develop a digital asset framework aimed at modernizing the financial system.

Innovation vs. Caution

Bowman criticized the “overly cautious approach” some banks have taken, arguing that outdated supervisory barriers must be removed if financial institutions want to remain competitive. She said regulators are now working on policies to expand access to digital banking services and allow blockchain adoption without unnecessary restrictions.

Tokenization and Stablecoins

Bowman highlighted tokenization as a transformative force, enabling faster and cheaper asset transfers while broadening access to capital markets. She also pointed to stablecoins, particularly under the new GENIUS Act, as a tool that could strengthen payment systems if regulated with clear and fair standards.

AI and Policy Shifts

On artificial intelligence, Bowman said the technology could improve fraud detection, risk management, and customer service, but warned of new risks that require balanced oversight. She also announced that the Fed will end the use of “reputational risk” penalties, allowing banks to work with legal digital asset firms without fear of regulatory backlash.

The Road Ahead

Bowman closed by calling for collaboration between banks, regulators, and technology developers, stressing that the future of U.S. finance will depend on whether institutions adapt to digital innovation rather than resist it.

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Filed under: Bitcoin - @ August 20, 2025 4:01 am