US Senator Cynthia Lummis stated that the confirmation of Michelle “Miki” Bowman as the vice chair for supervision at the Federal Reserve marks a critical shift in the regulatory approach toward digital assets. Here’s why Lummis holds this view:
Bowman’s Stance on Technology: During her April nomination hearing before the Senate Banking Committee, Bowman emphasized that US banks must be allowed to adopt new technologies to remain competitive. She also stressed that regulators should focus on promoting “sensible innovation”. This indicates that she is open to the idea of banks exploring and engaging with crypto – related technologies, which is a positive signal for the crypto industry.
Expected Influence on Bank – Crypto Relations: Although the Federal Reserve doesn’t directly regulate cryptocurrencies, it plays a crucial role in determining how the banking sector engages with digital asset services. As the vice chair for supervision, Bowman is expected to influence decisions around bank participation in crypto – related services, such as custody and settlement. Her leadership may lead to more banks being involved in the crypto space, thereby promoting the development of the crypto industry.
Commitment to Evidence – Based Regulation: Lummis believes that Bowman’s commitment to evidence – based regulation over political considerations will strengthen the US financial system. This approach is likely to bring more objectivity and rationality to the regulation of the crypto industry, creating a more stable and predictable regulatory environment for crypto – related businesses.
The Senate confirmed Bowman on June 5 in a narrow 48 – 46 vote, filling the vacancy left by Michael Barr’s departure in February. Bowman has served as a Fed governor since 2018 and will now oversee the central bank’s supervisory framework for major financial institutions and emerging technologies. Her appointment has been welcomed by industry stakeholders who have long called for regulatory clarity and consistency.
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