The new Vice Chair for Supervision of the Federal Reserve will lead the direction of encryption regulatory policy.

On June 5, CoinDesk reported that earlier today, the U.S. Senate confirmed that Federal Reserve Governor Michelle Bowman (Michelle Bowman) was promoted to vice chair for supervision, and the new vice chair will have a say in whether it is the banking access of cryptocurrencies or the issuance of stablecoins. The position of Vice Chair for Oversight was created in the wake of the 2008 global financial crisis to help the Federal Reserve focus on its supervisory responsibilities, as distinct from its more well-known responsibilities for managing U.S. monetary policy. The banking sector has been a pain point for the crypto industry, after the Federal Reserve and two other major banking regulators took a highly cautious approach to the crypto space, but in April this year they lifted previous restrictions on the services provided by banks to the crypto industry. The Fed’s potential regulatory role for stablecoin issuers remains unclear, and relevant regulatory legislation is still under discussion. Republican lawmakers have worked hard to exclude the Fed from its regulatory responsibilities for stablecoins, but the latest legislation currently under consideration still mandates that the Fed will regulate stablecoins issued within banks and assess whether foreign regulators are competent enough to deal with issuers outside the United States.