Crypto-friendly Federal Reserve Vice Chair for Supervision Michelle Bowman has emerged as a leading contender to replace Jerome Powell as Chair of the U.S. Federal Reserve when his term concludes next year. Bowman is one of five candidates shortlisted by Treasury Secretary Scott Bessent, according to multiple reports, signalling a potential pro-innovation shift in U.S. monetary policy under President Donald Trump.
Bessent’s list, finalised and confirmed this week, includes Bowman, former Fed governor Kevin Warsh, National Economic Council Director Kevin Hassett, Fed governor Chris Waller and Rick Rieder, Chief Investment Officer for Fixed Income at BlackRock. All five candidates have previously expressed openness toward cryptocurrencies and digital financial innovation.
The Treasury Secretary, who is leading the interview process, said the final decision will be made by the end of the year, following another round of interviews after Thanksgiving. “We have an excellent list of candidates who understand the balance between innovation and stability,” Bessent told reporters aboard Air Force One.
Tensions at the Fed and Trump’s Push for Change
The selection process comes amid ongoing tension between the White House and the Federal Reserve. President Trump has repeatedly criticised Chair Jerome Powell for not lowering interest rates sooner and has even threatened to remove him, a move widely viewed as legally difficult due to statutory protections ensuring the central bank’s independence.
The discord deepened earlier this year after Trump attempted to fire Fed Governor Lisa Cook over allegations of mortgage fraud. Cook successfully challenged the move, with the Supreme Court ultimately ruling in her favour.
Meanwhile, Stephen Miran was confirmed by the Senate last month to fill the recently vacated seat of Adriana Kugler, who resigned to return to Georgetown University. Powell’s term as Chair officially ends in May 2026, although he could continue serving as a member of the Board of Governors until 2028.
Trump’s administration has made clear that it wants a more “innovation-positive” approach at the central bank, one that aligns with his broader vision of making the U.S. a leader in digital finance and cryptocurrency.
Pro-Crypto Sentiments Among the Candidates
Bowman, known for her pragmatic yet progressive stance on technology, has openly said that the Federal Reserve stands at a “crossroads,” one that will determine whether the U.S. leads or lags in financial innovation. She has encouraged regulators to move beyond “an overly cautious mindset” and has even suggested that Fed staff should hold small amounts of cryptocurrency to understand the technology firsthand.
Fed Governor Chris Waller has also echoed support for blockchain integration, stating last week that crypto will “no longer be on the fringes” of the financial system. He has expressed interest in exploring a new “payment account” model designed to support fintech and payment innovators.
Former Fed Governor Kevin Warsh has previously advocated for a modernised central bank that embraces emerging technologies, while Kevin Hassett, who currently directs the National Economic Council, disclosed in June that he holds a $1 million stake in Coinbase Global Inc., signalling his personal investment in the sector’s success.
Rick Rieder, a senior BlackRock executive, has been one of the earliest Wall Street figures to discuss Bitcoin’s potential as a portfolio asset. In 2021, he revealed that BlackRock was “dabbling” in Bitcoin and in 2024, he told The Wall Street Journal that despite volatility, cryptocurrencies will gain mainstream acceptance over time.
A New Era for the Federal Reserve and Crypto Policy
The potential appointment of a pro-crypto Federal Reserve Chair could mark a turning point for U.S. monetary policy, especially as the digital asset industry seeks regulatory clarity after years of uncertainty under prior administrations.
If Bowman or another crypto-supportive candidate takes the helm, analysts predict a more balanced regulatory environment, with greater collaboration between traditional banks, fintechs and blockchain firms. Such a shift could also accelerate U.S. efforts to develop a digital dollar or central bank digital currency (CBDC), although Trump has previously voiced scepticism toward a government-controlled digital asset.
Regardless of who ultimately succeeds Powell, the shortlist reflects a clear strategic move by the Trump administration to reshape the Federal Reserve’s stance on digital assets and align monetary leadership with the President’s pro-innovation economic agenda.
As Trump prepares to make his final decision before year’s end, market watchers and crypto investors alike are anticipating what could be one of the most transformative leadership changes in U.S. financial history, one that may redefine how the world’s largest economy engages with cryptocurrency.
