Who is Bowman, the Vice Chair for Supervision at the Federal Reserve Board of Governors? What encryption statements has he made?

Deng Tong, Golden Finance

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

According to the Federal Reserve's official announcement, Michelle Bowman (Michelle Bowman) was sworn in as vice chair of the Federal Reserve's Board of Governors on Monday. **The swearing-in ceremony was presided over by Fed Chair Jerome Powell in the Governing Council's press room. Trump nominated Bowman on March 24, 2025, and was confirmed by the U.S. Senate on June 4. Her term as Vice Chair for Governance ends on June 9, 2029, and her term as a member of the Board of Directors ends on January 31, 2034.

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

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1. Michelle Bowman

Since taking office as a member of the Federal Reserve Board on November 26, 2018, Bowman has publicly opposed the potential risks of central bank digital currencies (CBDCs) and stablecoins without a regulatory framework.

She was reappointed as a council member on January 23, 2020, and took her oath of office on January 30, 2020, serving until January 31, 2034.

Before being appointed as a board member, Bowman served as the Kansas Bank Commissioner from January 2017 to November 2018. She also served as the Vice President of Farmers & Drovers Bank in Kansas from 2010 to 2017.

In addition to his banking experience, Bowman worked for Kansas Senator Bob Dole in Washington, D.C. from 1995 to 1996 and as legal counsel to the U.S. House of Representatives Transportation and Infrastructure Committee and the Government Reform and Oversight Committee from 1997 to 2002. In 2002, Bowman became 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 Ritchie.

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

2. What statements has Bauman made regarding cryptocurrency?

Bowman told members of Congress in April that the current regulation is too complex and repetitive. She said that if confirmed as the Fed's vice chair for supervision, she would "prioritize regulatory reform and focus on regulatory priorities, restore regulatory differentiation, ensure viable paths for innovation in the banking system, and promote transparency and accountability in supervision." **Overall, Bowman's policy bias is more accommodative. The following is a review of Bowman's previous discussions on CBDC and stablecoins, crypto regulation, and more.

The ability of CBDC to enhance financial inclusivity in the United States is in doubt.

Bowman expressed doubts about the need for CBDCs to improve the payment system and their ability to enhance financial inclusion in the United States. **CBDCs must move beyond the new FedNow system to gain a foothold in the market, and 4.5% of unbanked Americans are unlikely to be willing to use CBDCs. **"Unbanked households are also less likely to have a cell phone or access to the internet, which will create a barrier to CBDC adoption. ”

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

Baumann believes that cross-border payments need to establish a regulatory framework, and stablecoins may provide an alternative solution, depending on future legislation, while central bank digital currencies (CBDCs) may threaten user privacy, but these do not require further consideration.

Private Stablecoin Risks

Bowman also pointed out the risks of private stablecoins that she observed, which are tokens pegged to stable assets like the US dollar and are an integral part of the cryptocurrency market. She stated, "Stablecoins claim to be redeemable one-to-one for US 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 explore how to implement bank-like regulation on the issuers of these tokens.

The United States lacks a clear regulatory framework for digital assets.

Baumann has also criticized the United States for lacking a clear regulatory framework for new technologies.

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

"Despite some efforts to provide guidance, there remains significant uncertainty regarding the permissibility of these activities and regulatory expectations [...]. This places banks in a precarious position, having to rely on policymakers' vague yet non-binding statements, which will ultimately be criticized at some point in the future."

Baumann believes that without a clear regulatory framework, regulators may impose new requirements on companies after they make significant investments. "If our responsibility is to carry out effective supervision and regulation, we must be willing to engage in both innovative and traditional activities simultaneously. If we cannot provide financial institutions with a clear approach regarding new technologies, it may have a significant impact on banks' ability to cope with higher interest rates."

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

3. How 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, the Chair of the Cryptocurrency Innovation Committee and Acting CEO, stated in a statement made after the nomination of Bowman in March: "Bowman's past speeches and involvement have demonstrated her keen understanding of the evolving blockchain and digital asset landscape. Her willingness to explore and discuss the potential advantages and challenges of emerging technologies, including digital assets, reflects her commitment to developing sound policies."