Fed’s New Crypto-Curious Vice Chair Sparks Bullish Sentiment—Senator Lummis Sees Regulatory Thaw
Washington’s crypto winter may be ending. Senator Cynthia Lummis—Bitcoin’s staunchest ally on Capitol Hill—hailed the appointment of the Fed’s new vice chair as a turning point for digital assets. Could this signal the end of regulatory hostility? Wall Street bankers clutching their pearls: more at 11.
The move comes as institutional investors quietly stack SATs while publicly dismissing crypto as a 'speculative asset'—classic hedge fund hypocrisy. Meanwhile, the Fed’s balance sheet balloons past $9 trillion, but sure, let’s worry about decentralized ledgers.
Support for innovation
Bowman’s confirmation is being closely watched by the crypto industry, which has faced regulatory headwinds in recent years.
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.
At the time, Bowman said that banks must be allowed to consider new technologies that can improve their operations and services. She further stressed that regulators should focus on promoting “sensible innovation.”
While the Federal Reserve does not directly regulate cryptocurrencies, it plays a critical role in determining how the banking sector engages with digital asset firms, stablecoin issuers, and blockchain payment technologies.
Bowman is expected to influence decisions around bank participation in crypto-related services, including custody and settlement.
Industry backing
Bowman’s appointment has been welcomed by industry stakeholders who have long called for regulatory clarity and consistency.
Trade organizations like the Crypto Council for Innovation, which represents major firms including Coinbase and Fidelity, previously supported her nomination based on her experience with community banking and her openness to emerging technologies.
As Vice Chair for Supervision, Bowman will serve a four-year term. Her leadership arrives at a time when Congress is weighing multiple bills to address regulatory gaps in the crypto sector, including proposals focused on stablecoins, custodial services, and digital asset market structure.
The Fed’s evolving posture on fintech and crypto comes amid broader debates in Washington over stablecoin regulation and crypto regulation. With Bowman’s confirmation, crypto advocates hope the central bank will take a more open and structured approach to integrating digital assets into the financial mainstream.
