U.S. Federal Reserve Appoints Michelle Bowman as New Supervision Chief
The Federal Reserve appointed Michelle Bowman as the new vice chairman for supervision. Her role will influence how the Fed regulates the financial system, including stablecoin issuers.
- Bowman's nomination was confirmed by a narrow Senate vote of 48-46.
- She previously served as a governor on the Fed board.
- The supervision position was established post-2008 financial crisis to clarify the Fed's regulatory responsibilities.
- The Fed has taken a cautious stance towards crypto, pressuring banks to limit services for digital asset businesses.
- In April, the Fed lifted previous restrictions on bank interactions with the crypto sector.
- Current legislative discussions suggest the Fed may regulate stablecoin issuance in banks it oversees.
- While Democrats pushed for Fed oversight over nonbank issuers, legislation currently favors the Office of the Comptroller of the Currency (OCC) for that role.
- Bowman replaces Michael Barr but he remains on the board.