Main Points :
- Trump administration is vetting 11 candidates to succeed Fed Chair Powell, with at least three—Rick Rieder, Christopher Waller, and Michelle Bowman—shown to be crypto-positive.
- BlackRock’s Rieder sees Bitcoin as a core asset; Bowman and Waller support practical crypto engagement and innovation.
- A Fed led by crypto-friendly figures may boost institutional crypto adoption and reshape regulatory landscapes.
- Recent moves by Trump to fire Fed Governor Lisa Cook suggest escalating efforts to consolidate influence over the Fed, raising concerns about independence.
- Market implications include potential for lower rates, increased liquidity, and greater receptivity to digital assets.
- Legal battles and Fed independence at stake: Cook is suing, and multiple news outlets highlight this as a critical inflection point.
- Overall, a crypto-welcoming Fed could accelerate real-world blockchain adoption but may also politicize monetary policy.
Introduction & Background
Background: Fed Chair Vacancy and Crypto-Friendly Contenders
As Jerome Powell’s tenure as Federal Reserve Chair draws to a close in May 2025, the Trump administration is vetting 11 candidates to succeed him. Among these, Rick Rieder (BlackRock’s CIO for Global Fixed Income), Fed Governors Christopher Waller and Michelle Bowman are recognized for their constructive and forward-leaning stances on digital assets—an alignment that signals a possible shift in Fed thinking toward crypto-friendly policies.
Profiles: The Crypto-Friendly Trio
- Rick Rieder (BlackRock): Has openly stated that “Bitcoin is here to stay” and suggested it may become a significant part of institutional asset allocations.
- Michelle Bowman: Has proposed allowing Fed staff to hold small amounts of crypto as a means to gain “practical knowledge” of the technology.
- Christopher Waller: Characterized crypto payments as a new technology that banks “have nothing to fear,” promoting integration rather than resistance.
Potential Impacts
1. Institutional Adoption & Legitimacy
With Rieder at a policy helm, BlackRock’s influence and belief in crypto’s staying power could legitimize digital assets in institutional portfolios. Digital assets could gain policy recognition as part of the Fed’s broader framework.
2. Rates, Liquidity, and Market Appetite
Crypto-friendly leadership may lean into looser monetary policy—favoring rate cuts and increased liquidity—thus boosting demand for volatile assets like cryptocurrencies.
3. Innovation & Regulatory Clarity
Bowman’s push for practical understanding among Fed officials and Waller’s supportive stance may translate into clearer regulatory pathways for stablecoins, DeFi, and blockchain-based solutions.
4. Risks: Politicization of Central Banking
Trump’s attempt to fire Fed Governor Lisa Cook—now the focus of a lawsuit from Cook—underscores growing political pressure on a traditionally independent institution. News outlets (Reuters, Barron’s, AP, MarketWatch, Financial Times) raise deep concern that such moves threaten the Fed’s autonomy.
Latest Developments & News
- Fed Independence Under Pressure: Trump’s attempt to dismiss Cook is unprecedented and legally contested.
- Power Consolidation Moves: Reports indicate Trump may position loyalists across regional bank presidencies to influence Fed policy indirectly.
- Legal Settlements in Play: The outcome of Cook’s lawsuit could redefine presidential authority over the Fed.
- Global Watchers Sound Alarm: Analysts warn politicizing the Fed could destabilize markets and erode confidence in U.S. monetary integrity.
Conclusion
In summary, the Trump administration’s shortlist for Jerome Powell’s successor includes at least three individuals with favorable attitudes toward cryptocurrencies. If appointed, leaders like Rick Rieder, Michelle Bowman, and Christopher Waller could usher in a more crypto-friendly era at the Fed—potentially fostering institutional adoption, regulatory innovation, and stronger blockchain integration. However, these developments occur amid intensified politicization of the central bank, notably through Trump’s attempt to fire Governor Lisa Cook—a move that threatens the Fed’s independence and risks investor confidence. As markets anticipate possible rate cuts and policy shifts, the delicate balance between innovation and institutional integrity remains at the center of this high-stakes transition.
