Fed Official Warns Staff: Keep Crypto Holdings to a Minimum

Federal Reserve Vice Chair for Supervision Michelle Bowman urged Fed staff to restrict cryptocurrency holdings to “de minimus” amounts, emphasizing the need to avoid conflicts of interest and maintain regulatory impartiality. Speaking at a policy review, Bowman argued that limited crypto ownership could enhance staff understanding of digital assets, but significant holdings risk compromising the Fed’s credibility amid volatile markets and heightened global scrutiny.

The guidance follows the Fed’s 2022 ban on crypto ownership for employees, prompted by concerns over market volatility and ethical issues. Bowman’s call for a nuanced policy shift aligns with the Trump administration’s crypto-friendly stance, including the Strategic Bitcoin Reserve established in March 2025 and the termination of the Fed’s blockchain supervision program in August 2025. She stressed that hands-on experience with crypto could sharpen regulatory insight, but cautioned against substantial investments that could bias decision-making.

The crypto market, valued at over $4 trillion, remains prone to sharp swings, with Bitcoin recently dropping from $124,000 to $113,000. Regulatory bodies worldwide are intensifying oversight, and the Fed is developing policies on stablecoins and digital assets, making staff neutrality critical. Critics argue the “de minimus” limit stifles innovation, while supporters say it ensures public trust in the Fed’s impartiality.

This advisory, reported by Cointelegraph, reflects a balancing act: embracing blockchain’s potential while safeguarding regulatory integrity. As the U.S. aims to lead in digital finance, the Fed’s cautious approach underscores the challenges of integrating crypto into traditional systems without compromising oversight.