Fed Governor Michelle Bowman set for the crypto and industry committee

The US Senate Banking Committee will conduct a confirmation hearing next Thursday, where it will question Federal Reserve Governor Michelle Bowman on her nomination to become the central bank’s new Vice Chair for Supervision. Bowman, tapped by President Donald Trump earlier this week, would take over the role vacated by Michael Barr, who resigned in January.

According to Fox News correspondent Eleanor Terrett, Bowman, a former Kansas state bank regulator and veteran of community banking, is expected to face questions about the Federal Reserve’s treatment of crypto, particularly on issues like debanking and regulatory overreach.

“Another important nomination hearing for the banking and crypto industries is next Thursday. Expect lots of questions from the GOP on debanking, the Fed’s stance on digital assets, and its treatment of the crypto industry,” wrote Terrett.

Trump endorses Bowman for Board of Governers seat again

President Trump’s nomination of Bowman will become the second time the banker enters the US Federal Reserve System, as he appointed her for the position during Trump 1.0.

On Monday, Trump announced the nomination on his social media platform Truth Social, praising Bowman’s experience and track record that could offer a “change” in the Fed’s approach to banking regulation.

“Miki has the ‘know-how’ to get it done,” Trump said, “Our economy has been mismanaged for the past four years, and it is time for a change.”

Bowman would assume the top supervisory role at a time when federal agencies are being asked to find a balanced regulatory approach to the intersection between traditional finance and digital assets. 

As a former Kansas state bank commissioner, she championed less onerous regulatory frameworks for smaller banks and community financial institutions. Her predecessor, Michael Barr, left office due to a political cold war with the Trump administration, as he had advocated for stricter regulatory measures under former President Joe Biden.

Bowman voted against Barr’s proposal to raise capital requirements on financial institutions such as JPMorgan Chase and Goldman Sachs after the government faced pressure from US banking lobby groups. She also backed efforts to make the Federal Reserve stress tests more transparent.

Stablecoin debate to precede banking committee hearing

Bowman’s confirmation hearing will also take place against the backdrop of a political debate over how to regulate stablecoins, a crypto pegged to the value of the US dollar in a ratio of 1:1. 

On Wednesday, the House Financial Services Committee voted to pass the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act during a full committee markup. 

Per Eleanor Terrett’s report, the STABLE Act successfully passed through the US House FSC with a 32-17 vote after a 13-hour session. Six Democrats reportedly joined their Republican colleagues in supporting the bill.

🚨NEW: After a 13-hour marathon markup, the STABLE Act has passed out of the @FinancialCmte with a vote of 32-17 and six Democrats voting in favor. https://t.co/5Znwlnh1DA

— Eleanor Terrett (@EleanorTerrett) April 3, 2025

“Digital assets are already impacting American families every day, and their role is continuing to grow. The STABLE Act protects consumers while cementing the US Dollar as the world’s reserve currency and promoting the next generation of Web3 businesses here in the United States,” Steil said.

Both the House and Senate have now introduced legislation to establish federal oversight of stablecoins. The House version completely prohibits stablecoin issuers from offering interest, while the Senate version, called the Guiding and Establishing National Innovation for US Stablecoins Act of 2025 (GENIUS Act), excludes interest on some types of stablecoins, although it stops short of an outright ban.

Once lawmakers reconcile the differences between the two bills, the final legislation will need to pass both chambers of Congress before landing on President Trump’s desk.

Earlier this year, the American Bankers Association wrote a statement to the US lawmakers to warn them against provisions in the STABLE Act that could incentivize consumers to hold money in stablecoins rather than traditional bank deposits. 

“This concept is not a mere competitive concern; it poses a significant risk to the fundamental role banks play in credit intermediation,” the association reckoned.

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