U.S. Fed board member Bowman acknowledges virtual asset 'debanking'…"I will ensure fair access to banking services"

Uk Jin

Summary

U.S. Fed board member Michelle Bowman recently stated that she officially acknowledged the debanking issue in the virtual asset industry.
Bowman said she is reviewing new regulations that would allow banks to participate in virtual asset-related activities.
She emphasized that even if regulations are relaxed, strict risk management and AML/KYC systems must be established for banks to enter the virtual asset business.

A remark that appears to acknowledge the unfair measure long claimed by the virtual asset (cryptocurrency) industry, 'debanking' (traditional finance providing limited financial services to the virtual asset industry), has been made.

According to Forbes on the 6th (Korea time), Michelle Bowman, Vice Chair of the U.S. Federal Reserve (Fed), recently appeared before the House Financial Services Committee and said that bank supervision had affected the business of some virtual asset firms. She added, "Under my supervision, I will ensure that banks are not subject to external influence on whom they can serve."

This remark is interpreted as an official acknowledgment of the debanking issue the virtual asset industry has raised over the past few years. Bowman also said, "We are reviewing new regulations that would allow banks to participate in virtual asset-related activities."

The U.S. Federal Reserve already ended the practice of restricting relationships with virtual asset firms for 'reputational risk' in June 2025. The Federal Deposit Insurance Corporation (FDIC) also in March abolished the 2022 prior-notification requirement, clarifying that banks can engage in permitted virtual asset activities without prior agency approval.

However, even if regulations are relaxed, it is expected to take some time for banks to enter virtual asset-related businesses. Bowman pointed out, "Many traditional banks are not prepared to meet these requirements," and added, "Banks will need to have robust risk management systems and AML/KYC systems in place to conduct virtual asset-related activities."