The new Federal Reserve Vice Chair of Supervision Michelle Bowman will lead the direction of crypto regulatory policy

Earlier today, the US Senate confirmed that Federal Reserve Governor Michelle Bowman has been promoted to Vice Chair of Supervision. Whether it is the banking access of cryptocurrencies or the issuance of stablecoins, the new vice chair will have the voice over. The position of Vice Chair of Supervision was created after the 2008 global financial crisis to help the Federal Reserve focus on its regulatory responsibilities, as opposed to its better-known responsibilities for managing US monetary policy.
Banking has been a sore point for the cryptocurrency industry. The Federal Reserve and two other major banking regulators have taken a highly cautious approach to the crypto sector, but in April this year they lifted previous restrictions on banks providing services to the crypto industry. The Fed's potential regulatory role for stablecoin issuers remains unclear, and relevant regulatory legislation is still under discussion. Republican lawmakers have worked to exclude the Federal Reserve from stablecoin regulatory responsibilities, but the latest legislation currently under consideration still stipulates that the Federal Reserve will regulate stablecoins issued within banks and assess whether foreign regulators are competent enough to handle issuers outside the United States.