Important appointments made by the Fed related to Cryptocurrencies – Details of the new name are as follows:

The Fed has made important appointments to the cryptocurrency world as one of the highest-level institutions overseeing the banking system.

Michelle Bowman has been confirmed as the new Vice-Chairman of the Fed with a 48-46 vote in the Senate. Bowman, a Kansas Republican who previously served on the Fed’s board, will now be one of the top officials pushing the agency’s regulatory agenda.

Created in the wake of the 2008 global financial crisis, this role was designed to free the Fed from regulatory roles other than monetary policy. Bowman’s appointment can also tell a new era with the ongoing banking disaster in the cryptocurrency sector.

The Fed, long criticised by the Cryptocurrency Industry, has been cautious about digital assets, along with the U.S. Treasury Secretary of Currency (OCC) and Federal Deposit Insurance Corporation (FDIC). Industry representatives and some lawmakers argued that these agencies were blocking crypto companies’ access to banking services. However, this policy changed after Donald Trump was re-elected as president in early 2025. In April, the Fed, along with other regulators, rewind previous restrictions imposed.

The role of the Fed in regulating Stablecoin publishers remains unknown. While the law is working, Republican lawmakers are trying to limit the Fed’s powers in this area. However, the current bill continues to include the Fed’s role in regulating stable issuance by banks, and the role in issuing banks under its supervision and in assessing the validity of foreign regulators.

Democrats hope that the Fed will also oversee non-bank, ridiculous publishers, but the bill currently under discussion in the Senate gives the OCC the responsibility.

Bowman will work in his new role under Federal Reserve Chairman Jerome Powell. Powell had previously announced that he would hand over the task of setting up a monitoring agenda as proxy. Bowman will replace Democrat Michael Barr in this role. Barr continues to serve on federal committees despite the end of his term.

*This is not investment advice.