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

ChainCatcher news, according to CoinDesk, earlier today the U.S. Senate confirmed that Federal Reserve Governor Michelle Bowman has been promoted to Vice Chair for Supervision. The new Vice Chair will have a say in both the banking access for cryptocurrencies and the issuance of stablecoins. The position of Vice Chair for Supervision was established after the 2008 global financial crisis to help the Federal Reserve focus on its regulatory responsibilities, distinct from its more well-known role in managing U.S. monetary policy.

The banking sector has always been a pain point for the cryptocurrency industry. Previously, the Federal Reserve and the other two major banking regulators took a highly cautious approach to the crypto space, but in April of this year, they lifted previous restrictions on banks providing services to the crypto industry. The Federal Reserve's potential regulatory role for stablecoin issuers remains unclear, and related regulatory legislation is still under discussion.

Republican lawmakers are working to exclude the Federal Reserve from stablecoin regulatory responsibilities, but the latest legislation under consideration still stipulates that the Federal Reserve will regulate stablecoins issued within banks and assess whether foreign regulatory bodies are adequately equipped to handle issuers outside the U.S.