Michelle Bowman, the new Federal Reserve Vice Chairman for Supervision, will lead the direction of crypto regulatory policy

earlier today, the US Senate confirmed Michelle Bowman, a member of the Federal Reserve Board, as the Vice Chair for Supervision. The new Vice Chair will have authority over issues such as bank access to cryptocurrencies and the issuance of stablecoins. The position of Vice Chair for Supervision was established after the 2008 global financial crisis to help the Federal Reserve focus on its regulatory responsibilities, separate from its more well-known role in US monetary policy management.

The banking industry has always been a pain point for the cryptocurrency industry. Previously, the Federal Reserve and two other major banking regulators had taken a cautious approach to the crypto sector, but in April of this year, restrictions on banks providing services to the crypto industry were lifted. The potential regulatory role of stablecoin issuers by the Federal Reserve remains unclear, and relevant regulatory legislation is still being discussed. Republican lawmakers are trying to exclude the Federal Reserve from regulatory responsibilities over stablecoins, but the latest legislation under consideration still stipulates that the Federal Reserve will regulate stablecoins issued by banks and assess whether foreign regulatory agencies are competent to handle issuers outside the US.