TLDR
- 11 candidates are under consideration to replace Jerome Powell as Federal Reserve chair.
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At least 3 candidates have shown a positive stance on cryptocurrency.
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BlackRock’s Rick Rieder believes Bitcoin is “here to stay” and could be part of asset allocations.
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Fed officials Waller and Bowman have expressed favorable views on crypto’s role in finance.
The Donald Trump administration is actively considering 11 candidates to replace Jerome Powell as the Federal Reserve Chair when his term expires in May 2025. This decision is highly anticipated, as the role of Fed Chair plays a crucial part in shaping U.S. monetary policy, including setting interest rates that directly impact the economy and markets.
Among the names on the list are prominent figures such as Dallas Fed President Lorie Logan, former St. Louis Fed President James Bullard, and current Fed Vice Chair Philip Jefferson. Along with them, figures like Marc Sumerlin, former economic adviser under the Bush administration, and investment bank Jefferies’ market strategist David Zervos are also being considered.
Donald Trump Crypto-Friendly Candidates on the List
Of the 11 Donald Trump candidates, at least three have shown favorable attitudes toward cryptocurrency, which has caught the attention of investors and market watchers alike. Rick Rieder, Chief Investment Officer for Global Fixed Income at BlackRock, is one of the more notable figures.
Rieder has publicly stated that Bitcoin is “here to stay” and suggested it could become a “big part of the asset allocation framework.”
In early 2024, Rieder explained that over time, people are likely to become more comfortable with Bitcoin and its use as an asset class. BlackRock, under Rieder’s leadership, also manages the largest Bitcoin and Ethereum exchange-traded funds (ETFs), further highlighting his involvement and understanding of the crypto market.
Waller and Bowman Support Crypto’s Role
Other candidates, including current Fed officials Chris Waller and Michelle Bowman, have also made public statements signaling a more welcoming stance toward cryptocurrency. Bowman, the Fed’s top regulatory official, recently suggested that the Fed should allow its staff to invest in small amounts of crypto to gain a better understanding of the technology. She argued this would help the central bank have a “working understanding” of the industry’s functionality.
Similarly, Fed Governor Waller has stated that he sees nothing for the banking sector to fear from crypto payments operating outside traditional banking. He emphasized that crypto is merely “new technology to transfer objects and record transactions,” indicating a more neutral or supportive stance on the use of crypto in the financial sector.
Powell’s Cautious Approach to Crypto
Jerome Powell, whose tenure as Fed Chair ends in May 2025, has historically been more cautious when discussing cryptocurrencies. While Powell has acknowledged the growing mainstream adoption of crypto, he has also stressed the need for caution.
In recent remarks, Powell noted that crypto was more of a competitor to gold than to the U.S. dollar, signaling a more traditional, conservative approach to the emerging sector.
As Powell’s term nears its conclusion, market speculation grows about his potential successor. While Powell has urged banks to become more engaged with the crypto sector, his term has been characterized by a conservative, cautious approach to the industry. His successor may bring a different perspective, potentially altering how the Federal Reserve interacts with crypto markets.
