ed Chair

The Trump administration is actively preparing for a leadership change at the Federal Reserve as Jerome Powell’s term as Fed Chair ends in May. According to officials, 11 strong candidates are being considered, and three of them have shown a positive stance toward cryptocurrency, signaling potential changes for the U.S. financial landscape.

Who’s on the Shortlist?

Treasury Secretary Scott Bessent revealed that the vetting process will begin next month. Names reportedly under consideration include:

• Lorie Logan (Dallas Fed President)
• James Bullard (Former St. Louis Fed President)
• Philip Jefferson (Fed Vice Chair)
• Chris Waller (Fed Governor)
• Michelle Bowman (Fed Vice Supervision Chair)
• Larry Lindsey (Former Fed Governor)
• Marc Sumerlin (Former Bush economic adviser)
• David Zervos (Jefferies Chief Market Strategist)
• Rick Rieder (BlackRock CIO for Global Fixed Income)

Why Does It Matter for Crypto?

The Federal Reserve’s interest rate policy directly influences market liquidity. Lower rates often lead to higher investment in risk assets like Bitcoin and crypto, while rate hikes usually push investors toward safer options.

Crypto-Friendly Candidates

• David Zervos (Jefferies) – His firm has deep ties with crypto, backing companies like eToro, Circle, and Bullish. Jefferies also supported Michael Saylor’s Bitcoin strategy.
• Rick Rieder (BlackRock) – Known for bullish comments on Bitcoin, Rieder said crypto could become a big part of asset allocation and that it’s “here to stay.” BlackRock already manages the largest Bitcoin and Ether ETFs.
• Chris Waller & Michelle Bowman (Federal Reserve) – Waller stated that banks shouldn’t fear crypto payments, calling them “new technology to transfer objects and record transactions.” Bowman recently suggested that Fed staff should be allowed to invest in crypto for better understanding.

Powell vs. the New Era

Powell has taken a cautious stance on crypto, acknowledging its mainstream adoption but maintaining a conservative regulatory approach. With a possible leadership shift, the Fed could become more crypto-friendly, influencing future regulations and innovation in the digital asset market.

If a pro-crypto candidate takes charge, U.S. monetary policy and crypto adoption could see significant alignment in 2025 and beyond.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.