How do industry insiders evaluate her appointment as Vice Chair for Supervision of the Federal Reserve Board?

Written by: Deng Tong, Golden Finance

On June 4, 2025, senators confirmed Bowman as Vice Chair for Supervision with a vote of 48 in favor and 46 against, allowing her to propose policy recommendations and oversee the regulatory work of companies under the Federal Reserve's jurisdiction.

According to the official announcement from the Federal Reserve, Michelle Bowman was sworn in as Vice Chair for Supervision of the Federal Reserve Board on Monday. The swearing-in ceremony was presided over by Federal Reserve Chairman Powell in the Board's press room. Trump nominated Bowman on March 24, 2025, and she was confirmed by the U.S. Senate on June 4. Her term as Vice Chair for Supervision will end on June 9, 2029, and her term as a Board member will end on January 31, 2034.

Who is Bowman? What statements has she made regarding the cryptocurrency industry? How do industry insiders view her appointment as Vice Chair for Supervision of the Federal Reserve Board?

I. Who is Michelle Bowman?

Since taking office on November 26, 2018, Bowman has served as a member of the Federal Reserve Board, during which she has publicly opposed the potential risks of central bank digital currencies (CBDCs) and stablecoins lacking a regulatory framework.

She was reappointed as a Board member on January 23, 2020, and was sworn in on January 30, 2020, with a term ending on January 31, 2034.

Before her appointment to the Board, Bowman served as the Kansas Bank Commissioner from January 2017 to November 2018. She also served as Vice President of Kansas Farmers & Drovers Bank from 2010 to 2017.

In addition to her banking experience, Bowman worked for Kansas Senator Bob Dole in Washington, D.C. from 1995 to 1996 and served as legal counsel for the U.S. House of Representatives Committee on Transportation and Infrastructure and the Committee on Government Reform and Oversight from 1997 to 2002. In 2002, Bowman became the Director of Congressional and Intergovernmental Affairs for the Federal Emergency Management Agency. From 2003 to 2004, she served as Deputy Assistant Secretary and Policy Advisor to Secretary of Homeland Security Tom Ridge.

After working in Washington, D.C. for a time, Bowman led a government and public affairs consulting firm based in London before returning to Kansas in 2010.

II. What statements has Bowman made regarding cryptocurrency?

In April, Bowman told Congress that the current regulatory environment is overly complex and redundant. She stated that if confirmed as Vice Chair for Supervision of the Federal Reserve, she would "prioritize advancing regulatory reform and focusing regulatory priorities, restoring a differentiated regulatory mechanism, ensuring a viable path for innovation in the banking system, and promoting transparency and accountability in regulation." Overall, Bowman's policy inclination is more lenient. The following will review the discussions Bowman has had regarding CBDCs, stablecoins, and cryptocurrency regulation.

Doubts about CBDCs enhancing financial inclusion in the U.S.

Bowman expressed skepticism about the necessity of CBDCs to improve the payment system and their ability to enhance financial inclusion in the U.S. She noted that CBDCs must go beyond the new FedNow system to gain a foothold in the market, and that the 4.5% of Americans without bank accounts are unlikely to want to use CBDCs. "Households without bank accounts are also unlikely to have mobile phones or access to the internet, which will create barriers to CBDC adoption."

Bowman also holds a pessimistic view of CBDCs as a policy tool. She believes that the programmability of CBDCs "stands in stark contrast to the flexibility and freedom inherent in physical currency or bank deposits," and that these flexibilities and freedoms could be abused. Furthermore, such control could politicize the payment system and ultimately affect how currency is used. CBDCs that allow for such control could also threaten the independence of the Federal Reserve.

Bowman believes that a regulatory framework is needed for cross-border payments, and that stablecoins could provide an alternative, depending on future legislation, while CBDCs could threaten user privacy, but these issues do not require further consideration.

Risks of private stablecoins

Bowman also pointed out the risks she sees in private stablecoins, which are tokens pegged to stable assets like the dollar and are an integral part of the cryptocurrency market. She stated, "Stablecoins claim to be redeemable one-to-one for dollars, but in reality, they are less secure, less stable, and less regulated than traditional forms of currency." She suggested that the Federal Reserve should study how to implement bank-like regulation on the issuers of these tokens.

Lack of a clear regulatory framework for digital assets in the U.S.

Bowman has also criticized the lack of a clear regulatory framework in the U.S. for new technologies.

She has called on global regulators to pay attention to the current regulation of new banking practices, particularly banking-as-a-service and digital assets. Bowman believes that financial institutions have been in a "regulatory vacuum" regarding emerging technologies.

"While some efforts have been made to provide guidance, there remains significant uncertainty regarding the permissibility and regulatory expectations for these activities […] This puts banks in a precarious position, relying on policymakers' vague but non-binding statements, which will ultimately be criticized at some point in the future."

Bowman believes that without a clear regulatory framework, regulators may impose new requirements on businesses after they make significant investments. "If our responsibility is to conduct effective oversight and regulation, we must be willing to engage in both innovative and traditional activities." Failing to provide financial institutions with a clear approach to new technologies "could have significant implications for banks' ability to respond to higher interest rates."

While cryptocurrency activities may pose significant risks, the Federal Reserve does not want to stifle innovation. Bowman explained, "By stifling innovation, we may push growth in this area to the non-bank sector, leading to significantly reduced transparency and potential financial stability risks. We hope some banks continue to explore how to engage in activities related to cryptocurrencies."

III. How do industry insiders view Bowman's appointment as Vice Chair for Supervision of the Federal Reserve Board?

Wyoming Senator Cynthia Lummis praised this as a "turning point for digital assets." Lummis stated, "She is committed to evidence-based regulation rather than political considerations, which will strengthen the U.S. financial system."

Ji Hun Kim, Chairman of the Cryptocurrency Innovation Council and Acting CEO, stated in a release after Bowman's nomination in March: "Bowman's past speeches and engagements demonstrate her keen understanding of the evolving landscape of blockchain and digital assets. Her willingness to explore and discuss the potential benefits and challenges of emerging technologies, including digital assets, reflects her commitment to developing sound policies."

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