The Trump administration is preparing for a financial reset in 2025 with Jerome Powell's term ending. Among the contenders, three are openly supportive of cryptocurrency.
Candidates for Fed Chair
Treasury Secretary Scott Bessent confirmed that 11 strong candidates are being considered for the Fed chair position. Among the candidates are:
* Lorie Logan (Dallas Fed President) * James Bullard (Former St. Louis Fed Chief) * Philip Jefferson (Fed Vice Chair) * Chris Waller (Fed Governor) * Michelle Bowman (Fed Governor) * Marc Sumerlin * David Zervos (Jefferies strategist) * Rick Rieder (BlackRock)
The timing is critical with a potential rate cut in September, which could inject liquidity into the markets.
Support for Cryptocurrency from Candidates
Rick Rieder, BlackRock’s global fixed income CIO, is among the loudest crypto supporters, stating that Bitcoin is 'here to stay' and could become a core allocation asset for institutions.
Fed Governors Chris Waller and Michelle Bowman also show support for cryptocurrencies. Bowman suggested allowing Fed employees to hold small amounts of crypto to better understand it. Waller argued that banks have 'nothing to fear' from crypto payments. Their views stand in stark contrast to Powell’s cautious approach, indicating a shift in sentiment within the Fed.
Conflict Between Trump and Fed
Tensions are rising between the Trump administration and the Fed due to allegations against Governor Lisa Cook regarding mortgage fraud. Despite calls for her resignation, Cook has refused, as Trump threatens her dismissal. This clash showcases the growing tension between the White House and the Fed, raising questions about the central bank's independence. With Powell’s term ending and several crypto-friendly candidates in play, a significant shift in the U.S. approach to digital assets could be on the horizon.
With Jerome Powell’s term ending and an increasing number of crypto-friendly candidates in the mix, significant potential changes in the Fed’s approach to digital assets may be on the way. Supporting such candidates could accelerate the acceptance of cryptocurrency in the U.S. financial system.
