Federal Reserve Governor Michelle Bowman is scheduled to appear before the Senate Banking Committee next Thursday for a confirmation hearing regarding her nomination as Vice Chair for Supervision.
President Donald Trump selected Bowman to fill the role left vacant by Michael Barr, who stepped down in January following policy disagreements with the administration.
Bowman’s potential appointment comes at a time when the Federal Reserve is under pressure to address growing concerns in both traditional and digital finance. A former Kansas bank commissioner and community banking advocate, Bowman has long supported reduced regulatory burdens for smaller institutions. She is expected to face questions on crypto oversight, allegations of regulatory overreach, and the Fed’s role in recent cases of debanking.
Crypto policy and supervision under scrutiny
According to Fox News correspondent Eleanor Terrett, lawmakers will closely examine Bowman’s stance on the Fed’s treatment of digital assets. Republican senators are expected to question her about issues such as debanking practices and how federal regulators have approached the crypto industry. Bowman’s history of opposing increased capital requirements for major financial institutions may also come under review.
As a voting member of the Federal Reserve Board, Bowman previously rejected a proposal by Michael Barr to raise capital requirements for big banks. She has backed efforts to improve transparency in the Fed’s stress testing programs. Her potential promotion would give her direct influence over the regulatory direction of the U.S. financial system, especially as it intersects with digital assets.
Trump’s support signals shift in regulatory tone
President Trump announced Bowman’s nomination on Truth Social earlier this week, calling her a capable and experienced regulator. The endorsement suggests a possible shift in the Federal Reserve’s regulatory priorities, with more emphasis on flexibility for community banks and clearer rules for the digital asset sector.
Trump highlighted Bowman’s record in banking oversight and suggested she could help reshape the Fed’s approach. Her predecessor, Barr, had supported tougher regulation under President Biden, which drew criticism from banking lobby groups and conservative lawmakers.
Stablecoin legislation advances in Congress
The confirmation hearing will coincide with ongoing debate in Congress over stablecoin regulation. The House Financial Services Committee passed the STABLE Act on Wednesday with bipartisan support. The bill prohibits stablecoin issuers from offering interest, unlike the Senate’s GENIUS Act, which allows some exceptions.
Lawmakers must now reconcile differences between the two bills before sending final legislation to President Trump. The American Bankers Association has warned that encouraging stablecoin adoption could weaken the role of banks in the economy.