Republican Fed Governor Christopher Waller, in a speech on Friday, stated that Stablecoins would broaden the reach of the US dollar and strengthen its role in Global Finance.
The Federal Reserve Governor, alongside his colleague Michelle Bowman, delivered strong pro-crypto speeches in line with the general body language of the Trump administration.
Fox Business Journalist Eleanor Terret noted that the speeches from both Federal Reserve governors come in anticipation of a possible nod from the Trump administration to replace Michael Barr as the next vice chair for supervision.
The Office of the Vice-chair for Supervision oversees regulation, including how the Federal Reserve interacts with Banks and Crypto.
One of the two Federal Reserve Governors would be appointed when the current Vice Chair steps down.
A Sudden Shift in Stance
The speeches from Fed Governors Christopher Wallace and Michelle Bowman represent a steep shift in opinion as regards the crypto industry and its place in the global financial ecosystem.
The duo actively held an anti-crypto stance in the previous administration and voted for policies that made it difficult for banks to engage with crypto.
The Custodia Bank case, a digital asset payment and custody solution entity, presents a good example of their previously held opinions.
The two Fed Governors voted against the bank becoming a member of the Federal Reserve team.
The sudden shift in tone is remarkable and aligns with the general body language of the Trump administration as regards digital assets.
In her speech, Michelle Bowman emphasized the need for a clear and progressive regulatory framework that encourages innovation instead of stifling it.
She noted that various regulatory measures in the past may not be suitable for an emerging technology like crypto and should be overhauled.
Michael S. Barr, the Federal Reserve’s Vice Chair for Supervision, announced his resignation, effective February 28, 2025, or earlier if a successor is confirmed. He will continue to serve as a Federal Reserve Board of Governors member until his term concludes in January 2032.
Appointed in July 2022, Barr’s early departure comes amid the transition to President Donald Trump’s administration. Barr aims to prevent potential legal conflicts and facilitate a smoother leadership transition by stepping down ahead of schedule.
