Author of the news: Crypto Emergency
The Trump administration is considering 11 candidates for the position of Chairman of the Federal Reserve System of the United States. The term of the current head Jerome Powell expires in May, and at least three contenders have previously expressed support for cryptocurrencies.
Treasury Secretary Scott Bessent stated on Fox News that the list includes 'very strong candidates,' and the selection process will begin next month.
Who is on the list?
According to CNBC on August 13, among the contenders are Dallas Fed President Lori Logan, former St. Louis Fed head James Bullard, Fed Vice Chairman Philip Jefferson, and Fed Governor Chris Waller. Others under consideration include:
Michelle Bowman is the Vice Chairman of the Federal Reserve for Supervision
Larry Lindsey is a former Federal Reserve Governor
Mark Sumerlin is an economic advisor to the Bush administration
David Zervos is a top executive at the investment bank Jefferies
Rick Rieder is the Chief Investment Officer of BlackRock for Global Bonds
Why is this important for the crypto market?
The Federal Reserve directly influences financial markets through interest rates. Lowering rates increases liquidity and stimulates interest in risky assets—including cryptocurrencies. Conversely, raising rates cools the market.
Some candidates have close ties to the crypto industry:
Jefferies, where Zervos works, has supported the market entry of projects like eToro, Circle, Bullish, and Figure. The bank was also one of the first to support Michael Saylor's strategy of buying Bitcoin.
Rick Rieder of BlackRock has repeatedly stated that Bitcoin could play an important role in asset allocation. He emphasized that interest in cryptocurrencies is particularly high among millennials.
Crypto-positive sentiment within the Fed
Among the current members of the Federal Reserve, there are also supporters of cryptocurrencies:
Michelle Bowman suggested allowing Federal Reserve employees to invest small amounts in cryptocurrencies to better understand the technology.
Chris Waller stated that the banking sector should not fear crypto payments, calling them 'a new technology for transferring and recording transactions.'
In comparison, the current Chairman Jerome Powell has taken a more cautious stance. He acknowledged the growing popularity of cryptocurrencies but emphasized the need for regulation. In December 2024, he referred to Bitcoin more as an analog to gold than a competing asset to the dollar.
Powell's term expires in May, but he remains a member of the Fed board until 2028. His last speech raised expectations for an interest rate cut at the upcoming meeting in September—a move that could further invigorate interest in cryptocurrencies.
