Recently, Michelle Bowman, the Vice Chair for Supervision of the Federal Reserve, delivered an important speech at a blockchain seminar in Wyoming, revealing the Fed's latest stance on the crypto assets industry and blockchain technology.

Bowman admitted that crypto assets companies previously faced interruptions in banking services due to regulatory uncertainty. She announced that the Fed removed the 'reputation risk consideration' in bank regulation at the end of June this year to eliminate the barriers for financial institutions to serve legitimate digital asset companies. This move marks a fundamental shift in the Fed's attitude towards blockchain innovation.

Bowman pointed out that the Crypto Assets industry has long been plagued by ambiguous standards, contradictory guidance, and inconsistent interpretations from regulatory agencies. She emphasized that banks should not face penalties for serving legally operating clients, and clearly stated that the decision-making power regarding client choices entirely falls within the authority of the bank's management, and regulatory agencies should not interfere.

The Fed has shifted from a past mindset of 'over-caution' to supporting the traditional banking system's embrace of Blockchain technology. Bowman warned that regulators must choose between 'establishing a technological framework' and 'allowing innovation to completely bypass the banking system,' the latter of which could undermine the banking sector's significance in the economy.

To ensure the long-term implementation of the 'removal of reputational risk' policy, the Fed is updating its review manuals and regulatory materials. Bowman also proposed four core principles guiding the new direction of Fed's digital asset regulation, with 'regulatory certainty' listed as the top principle aimed at addressing the long-standing issues faced by the industry.

This series of measures indicates that the Fed is actively adjusting its regulatory strategy to adapt to the rapidly developing digital asset ecosystem, while also paving the way for traditional financial institutions to participate in Blockchain innovation. This shift may create a more favorable environment for the further development and application of Crypto Assets and Blockchain technology.