• Stephen Miran, nominated by President Trump, may bring a friendly approach towards cryptocurrencies to the Federal Reserve as a new member of the Board of Governors.

  • Miran's pro-crypto stance and support for deregulation suggest potential positive shifts for the cryptocurrency market.

  • His appointment could influence interest rate policies and foster a favorable environment for Bitcoin and Ethereum.

President Trump nominated Stephen Miran, the current chairman of the Council of Economic Advisers, to the Federal Reserve Board of Governors. The pro-crypto economist will replace Adriana Kugler in a temporary role until January 2026. This move signals potential shifts towards lower rates and supportive monetary policy for cryptocurrencies.

Miran's strong pro-crypto stance

Miran has been outspoken about the economic potential of cryptocurrencies. In his interview with The Bitcoin Layer, he stated:

"I believe that removing financial constraints will be a strong part of it. I believe that cryptocurrencies have a significant potential role in innovation and introducing a new economic boom under Trumpโ€™s administration."

His appointment indicates Trump's commitment to a pro-crypto economic policy. Miran's background includes experience in the treasury and Wall Street expertise at Hudson Bay Capital.

Miran previously criticized the aggressive stimulus measures by the Federal Reserve during the COVID-19 pandemic as inflationary. However, he is now aligning with Trumpโ€™s calls to lower interest rates. His appointment comes at a time when Trump is seeking a "shadow president" to challenge Jerome Powell's policies.

The nomination requires Senate confirmation when Congress convenes in September. If confirmed, Miran will vote in the mid-September interest rate decision meeting for the Federal Reserve. Markets expect that his presence may bolster arguments for rate cuts.

Two of the Trump-appointed governors already opposed at last weekโ€™s meeting. This marked the first time multiple governors voted against an interest rate decision in over 30 years.

Catalyst for the cryptocurrency market

Miran's appointment to the Federal Reserve could significantly impact cryptocurrency markets. His pro-crypto stance, along with his support for loose monetary policy, creates favorable conditions for digital assets. Bitcoin and Ethereum typically perform well in low-rate, high-liquidity environments.

Miran sees cryptocurrencies, along with the fact that they traditionally perform well in low interest rate and high liquidity environments, as a major catalyst for assets such as Bitcoin and Ethereum.

Additionally, Miran has experience as a senior strategist at Hudson Bay Capital, an investment firm that traded in FTX bankruptcy claims filed in late 2022. His nomination clearly reflects the administration's intent to place a more agreeable figure within the rapidly evolving landscape of digital assets in a key regulatory role.

Following Miran's nomination, the price of Bitcoin rose about 2%, surpassing $117,000.

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