The Federal Reserve, a key regulator of US banks, is about to acquire Michelle Bowman, the superintendent’s new vice-chairman. Michelle Bowman will ultimately guide the Fed oversee the financial system.
After a strict party-affiliated confirmation vote in the Senate approved the Kansas Republican nomination 48-46, Bowman, who is already one of the governors of the Federal Reserve Committee, will be promoted to one of his leadership roles. The supervisor’s job was created after the 2008 Global Financial Meltdown and aims to help focus the regulatory role of central banks that differ from marshaling US monetary policy.
Banks are a painful place for the crypto industry, and the Fed took a very careful crypto stance alongside the offices of two other banking institutions: the Secretary of Currency and the Federal Deposit Insurance Company. The sector and its allies of lawmakers have denounced the institutions for pressured the banking system to cut off digital asset companies and insiders from banking services and risk industry health, which changed this year after becoming President of the United States. In April, the Fed joined other regulators and retracted previous restrictions on banks’ interactions with the industry.
The Federal Reserve’s potential role for Stablecoin publishers remains vague as regulatory laws are still debated. Republican lawmakers are working hard to put the central bank from their stubcoin duties to a by-product, but the latest legislation is still foreseen.
Democrats supported the Fed’s obligations as a watchdog to non-bank issuers, but the current law debated on the Senate floor puts the OCC in that position.
In her new job, Bowman will serve under Federal Reserve Chairman Jerome Powell. She replaced her Democratic predecessor, Michael Burr, with that position, but he stayed on the board.
Read more: Fed’s Powell says he’s also worried he’ll block us from tense encryption
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