The US Senate has confirmed Michelle “Miki” Bowman as President Donald Trump’s pick to be vice chair for supervision for the Federal Reserve, signaling a potential change in the central bank’s regulatory approach after the departure of Michael Barr.
In a 48-46 vote on June 4, senators confirmed Bowman to be the vice chair for supervision, allowing her to introduce policy recommendations and oversee the supervision and regulation of companies under the Fed’s authority. Wyoming Senator Cynthia Lummis, often an advocate for cryptocurrencies in Congress, lauded the confirmation as a “turning point for digital assets.”
“Miki’s commitment to evidence-based regulation over political considerations will strengthen America’s financial system,” said Lummis.
Bowman had been serving as a member of the Fed’s Board of Governors since 2018, during which time she spoke out against the potential risks of central bank digital currencies (CBDCs) and stablecoins without regulatory frameworks. However, she did not directly address any potential policy positions on digital assets during her April nomination hearing.
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“Governor Bowman’s past speeches and engagement have demonstrated a keen understanding of the evolving blockchain and digital asset landscape,” said Crypto Council For Innovation president and acting CEO Ji Hun Kim in a March statement following her nomination. “Her willingness to explore and discuss the potential benefits and challenges of emerging technologies, including digital assets, reflects a commitment to informed policymaking.”
Fed policies on crypto and beyond
The Fed vice chair for supervision was the most recent Trump pick to be confirmed by the Senate, amid many in Congress calling for investigations into the president’s potential conflicts of interest with the crypto industry. The Senate Agriculture Committee is also scheduled to consider Trump’s nomination of Brian Quintenz to chair the Commodity Futures Trading Commission on June 10.
Jerome Powell, serving as Fed chair since 2018, has been a frequent target of criticism by Trump and Republicans for not cutting interest rates in the US. In January, the chair encouraged Congress to move forward with “a greater regulatory apparatus around crypto,” in response to the potential risks from stablecoins.
The central bank traditionally operates independently in determining the country’s monetary policies, but it can face political pressure from the White House, lawmakers, and residents.
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