A Critical Appointment Related to Cryptocurrency Has Been Made at the FED! Here are the Details of the New Name

The FED made a critical appointment for the cryptocurrency world as one of the highest-level institutions overseeing the banking system.

Michelle Bowman, approved by 46 votes to 48 in the Senate, has become the new vice chair of supervision at the FED. The Kansas Republican, who previously served on the Fed Board, will now be one of the top officials guiding the institution's regulatory agenda.

This task, established after the 2008 global financial crisis, was designed to ensure that the Fed focuses on its regulatory role outside of monetary policy. Bowman's arrival in this position may also herald a new era in terms of ongoing banking-related troubles in the cryptocurrency sector.

The Fed, which has long been criticized by the cryptocurrency industry, has been taking a cautious stance towards digital assets, along with the (OCC) of the U.S. Treasury Department's Office of Comptroller and the Federal Deposit Insurance Corporation (FDIC). Industry representatives and some lawmakers have argued that these institutions are blocking crypto companies' access to banking services. However, following the re-election of Donald Trump as president in early 2025, this policy has changed. In April, the Fed, along with other regulatory agencies, withdrew the restrictions it had previously imposed.

The role of the FED in the regulation of stablecoin issuers remains uncertain. While legislative efforts are ongoing, Republican lawmakers are trying to limit the FED's powers in this area. However, the current bills continue to include the FED's responsibility to regulate the issuance of stablecoins by banks under its supervision and its role in assessing the adequacy of foreign regulatory bodies.

Although the Democrats want the FED to also regulate non-bank stablecoin issuers, the bill currently being discussed in the Senate assigns this responsibility to the OCC.

Bowman will work under FED Chairman Jerome Powell in his new role. Powell had previously announced that he would delegate this role to his deputy in determining the oversight agenda. Bowman will replace Democrat Michael Barr in this role. Despite the expiration of his term, Barr continues in his position on the FED Board.

*It is not investment advice.

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