On June 4th, the US Senate confirmed Michelle Bowman, a governor of the Federal Reserve, to serve as the vice chair for supervision at the central bank. This appointment is regarded by Senator Lummis as a win for the crypto industry, probably due to the following reasons:
Stance on CBDC: Bowman has been skeptical about the introduction of a US central bank digital currency (CBDC). She has criticized the ability of CBDC technology to solve real – world financial problems, believing that the introduction of a CBDC could pose significant risks and trade – offs for the financial system, such as concerns about consumer privacy. Her view is in line with the position of some in the crypto industry who oppose the large – scale implementation of CBDC, which they believe could disrupt the existing crypto market ecosystem.
Advocating for Private – Sector Innovation: Bowman has advocated for a framework that enables private – sector innovation while regulators maintain “transparency and open communication, including demonstrating a willingness to engage during the development process.” This indicates that she supports the innovation and development of the private sector in the financial field. The crypto industry is a highly innovative area within the private sector, and her attitude may bring more room for development and innovation opportunities to the crypto industry.
View on Stablecoins: Bowman has expressed concerns about the stability and security of private stablecoins in the cryptocurrency market and suggested that the Federal Reserve consider implementing bank – like regulations on stablecoin issuers to ensure financial security. Although this involves regulatory requirements for stablecoins, it also reflects her attention and recognition of the importance of stablecoins in the cryptocurrency market. Appropriate regulation is conducive to the healthy development of the stablecoin market and, consequently, to the overall stability of the cryptocurrency industry.
Overall Regulatory Attitude: Bowman has stated that bank regulatory policies should not be used to limit or exclude access to banking services for legitimate customers and businesses in a way that serves other unrelated policy goals. This suggests that she advocates for a more rational and fair regulatory approach, which is beneficial for the cryptocurrency industry to obtain a more objective and just regulatory environment, rather than being overly restricted by policies that are not directly related to it.
Senator Lummis has long been a supporter of the crypto industry, criticizing the SEC’s overly aggressive crackdown on the crypto industry and advocating for regulatory clarity for the crypto industry. Therefore, she may believe that Bowman’s appointment as vice chair for supervision will bring a more favorable regulatory environment for the crypto industry, which is why she views it as a win for crypto.
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