Fed governor: Regs should engage with industry on safe DLT use in banking

A governor at the Federal Reserve Board argued banking regulators should move from their current reactive posture on banking innovation to a position that actively encourages new technologies, business models, and ideas to solve age-old problems.

In a speech delivered Wednesday at an industry event, Michelle Bowman said there are good reasons why regulators often look critically at innovation in banking, but that they need to begin prioritizing innovation.

“[M]y goal today is to propose some building blocks that could help regulators get to ‘yes’ more often and potentially smooth the rough path to successful innovation in the banking system,” she said.