Senator Lummis: New Fed Vice Chair Appointment Marks ‘Brighter Future’ for Crypto
US Senator Cynthia Lummis expressed that the confirmation of Michelle “Miki” Bowman as Vice Chair for Supervision at the Federal Reserve signifies a significant transformation in the regulatory stance on digital assets.
Lummis referred to the appointment as a “turning point” for cryptocurrency policy, anticipating a “brighter future” for the industry.
The Senate approved Bowman’s nomination on June 5 with a close 48-46 vote, filling the vacancy left by Michael Barr’s exit in February.
Bowman, who has been a Fed Governor since 2018, will now oversee the central bank’s supervisory framework for major financial institutions and emerging technologies.
In a social media post, Lummis stated:
“Miki’s commitment to evidence-based regulation over political considerations will strengthen America’s financial system.”
The Wyoming Senator has consistently advocated for digital assets and is the principal sponsor of the strategic Bitcoin (BTC) reserve bill.
Support for innovation
Bowman’s confirmation is closely monitored by the crypto sector, which has encountered regulatory challenges in recent years.
During her nomination hearing in April before the Senate Banking Committee, Bowman highlighted that US banks should be permitted to adopt new technologies to stay competitive.
At that time, she noted that banks need the ability to explore new technologies that can enhance their operations and services, emphasizing that regulators should aim for promoting “sensible innovation.”
While the Federal Reserve does not directly oversee cryptocurrencies, it plays a pivotal role in shaping how the banking sector interacts with digital asset firms, stablecoin issuers, and blockchain payment solutions.
Bowman is anticipated to influence decisions regarding bank participation in crypto-related services, such as custody and settlement.
Industry backing
Bowman’s appointment has been positively received by industry stakeholders who have long sought regulatory clarity and consistency.
Organizations like the Crypto Council for Innovation, representing prominent firms including Coinbase and Fidelity, previously voiced support for her nomination based on her community banking experience and receptiveness to emerging technologies.
As Vice Chair for Supervision, Bowman will serve a four-year term, at a time when Congress is contemplating various bills to fill regulatory gaps in the crypto sector, with proposals focusing on stablecoins, custodial services, and the structure of the digital asset market.
The Fed’s evolving stance on fintech and crypto emerges amid broader discussions in Washington regarding stablecoin and crypto regulation. With Bowman’s confirmation, crypto proponents hope the central bank will adopt a more open and structured approach to integrating digital assets into the financial mainstream.
Mentioned in this articleLatest Alpha Market Report
Source link
#Senator #Lummis #Fed #vice #chair #appointment #signals #brighter #future #crypto
