Who is Bowman, the Vice Chairman of Supervision of the Federal Reserve Board? What cryptographic statements have he made?

Deng Tong, Golden Finance

On June 4, 2025, senators voted 48-46 to confirm Bowman as Vice Chairman of Supervision, which will enable her to make policy recommendations and oversee the supervision of companies under the Fed's jurisdiction.

According to the official announcement of the Federal Reserve, Michelle Bowman was sworn in as Vice Chairman of Supervision of the Federal Reserve Board on Monday.The swearing-in ceremony was presided over by Federal Reserve Chairman Powell in the press room of the Board of Governors. Trump nominated Bowman on March 24, 2025 and was confirmed by the U.S. Senate on June 4. Her term as Vice Chairman of Supervision will end on June 9, 2029, and her term as a member of the board will end on January 31, 2034.

Who is Bowman? What remarks have been made related to the crypto industry? How do industry insiders evaluate her appointment as Vice Chairman for Supervision of the Federal Reserve Board?

1. Michelle Bowman

Bowman has served as a member of the Federal Reserve Board since taking office on November 26, 2018. During this period, she publicly opposed the potential risks of central bank digital currencies (CBDCs) and stablecoins that lack a regulatory framework.

She was reappointed to the Board on January 23, 2020, and was sworn in on January 30, 2020, to serve until January 31, 2034.

Prior to her appointment to the Board, Bowman served as Kansas Bank Commissioner from January 2017 to November 2018. She also served as Vice President of Farmers & Drovers Bank of Kansas from 2010 to 2017.

In addition to her banking experience, Bowman worked in Washington, D.C. for Kansas Senator Bob Dole from 1995 to 1996 and served as Counsel to the U.S. House Committee on Transportation and Infrastructure and the Committee on Government Reform and Oversight from 1997 to 2002. In 2002, Bowman became Director of Congressional and Intergovernmental Affairs for the Federal Emergency Management Agency. From 2003 to 2004, she served as deputy assistant secretary and policy advisor to Tom Ridge, secretary of the Department of Homeland Security.

After a stint in Washington, D.C., Bowman led a London-based government and public affairs consulting firm before returning to Kansas in 2010.

Second, what crypto-related remarks has Bowman made

Bowman told members of Congress in April that current regulation is too complex and duplicative. She said that if confirmed as the Fed's vice chair for supervision, she would "prioritize regulatory reform and focus on regulatory priorities, restore regulatory differentiation mechanisms, ensure a viable path for innovation in the banking system, and promote transparency and accountability in supervision."Overall, Bowman's policy tendencies are more relaxed. Below is a review of Bowman's previous discussions on CBDCs, stablecoins, and crypto regulation.

CBDC’s ability to enhance financial inclusion in the United States is in doubt

Bowman expressed doubts about the need for CBDC to improve the payment system and its ability to enhance financial inclusion in the United States. CBDC must go beyond the new FedNow system to gain a foothold in the market, and the 4.5% of Americans without bank accounts are unlikely to be willing to use CBDC."Unbanked households are also less likely to have mobile phones or access to the Internet, which will create obstacles to the adoption of CBDC."

Bowman is also pessimistic about CBDC as a policy tool. She believes that the programmability of CBDC "contrasts sharply with the flexibility and freedom inherent in physical currency or bank deposits," which may be abused. In addition, This type of control may also lead to the politicization of the payment system and ultimately affect the way money is used. A CBDC that allowed for such control could also threaten the Fed’s independence.

Bowman argued that Cross-border payments require a regulatory framework, stablecoins may offer an alternative, depending on future legislation, and central bank digital currencies (CBDCs) could threaten user privacy, but these are not subject to further consideration.

Private Stablecoin Risks

Bowman also pointed out what she sees as the risks of private stablecoins, which are tokens pegged to stable assets such as the U.S. dollar and are an integral part of the cryptocurrency market. She said: "Stablecoins claim to be redeemable one-to-one with the US dollar, but in reality, they are less secure, more unstable and less regulated than traditional forms of currency." She suggested that the Federal Reserve should study how to impose bank-like supervision on the issuers of these tokens.

The United States lacks a clear regulatory framework for digital assets

Bowman has also criticized the United States for lacking a clear regulatory framework for new technologies.

Bowman has called on global regulators to pay attention to the current regulation of new banking businesses, especially banking as a service and digital assets. Bowman believes that financial institutions have been in a "regulatory vacuum" when it comes to emerging technologies.

“While some efforts have been made to provide guidance, there remains significant uncertainty about the permissibility of these activities and regulatory expectations [...]. This puts banks in the dangerous position of relying on broad but non-binding statements from policymakers that will ultimately be criticized at some point in the future,” Bowman said, arguing that without a clear regulatory framework, regulators could impose new requirements on companies after they make significant investments. “If our job is to supervise and regulate effectively, we must be willing to engage in both innovative and traditional activities.” Failure to provide financial institutions with a clear approach to new technologies “could have a significant impact on how banks respond to higher interest rates.” While cryptocurrency activities may pose significant risks, the Fed does not want to hinder innovation. Bowman explained: "By suppressing innovation, we may push growth in this area to the non-bank sector, resulting in greatly reduced transparency and potential financial stability risks. I hope some banks will continue to explore how to engage in cryptocurrency-related activities."

3. What do industry insiders think of Bowman's appointment as Vice Chairman of Supervision of the Federal Reserve Board?

Wyoming Senator Cynthia Lummis praised this as a "turning point for digital assets."  "Her commitment to evidence-based regulation, rather than political considerations, will strengthen America's financial system," Loomis said.

Ji Hun Kim, chairman and acting CEO of the Crypto Innovation Council, said in a statement after Bowman's nomination in March: "Bowman's past speeches and engagements demonstrate her keen understanding of the evolving blockchain and digital asset landscape. Her willingness to explore and discuss the potential benefits and challenges of emerging technologies, including digital assets, reflects her commitment to developing smart policy."