President Biden has nominated three people to the Fed’s board. They will shortly come up for a hearing with the senate’s banking committee. The board is the principal governing body at the Fed. The board consists of seven members. Each of the members serves a term of four years.
However, it is unlikely that the three nominees will have a significant influence on the way the Fed will deal with crypto in the times to come in the US. This assertion is based on the fact that the three nominees have not previously shared any strong views on crypto in the public sphere.
Most importantly, the core leadership at the Fed will remain unchanged. The nominees are therefore unlikely to make a significant impact on crypto policies.
At the Fed, the chair and the governor have been open to stablecoins and CBDCs coexisting. Together with the nominees, if the leadership had also changed, then there could have been a shift in crypto policies. That is not the case. During the period of learning for the nominees, there will be no delays and work at the Fed can go on as before. There will also be stability in the Fed’s approach to crypto policies.
The developments with regard to the nominees will be watched very closely by the crypto industry. The crypto markets react strongly to the policies and regulations announced by the Fed.
President Biden has nominated Sarah Bloom Raskin, Dr Lisa Cook and Dr Philip Jefferso to the Fed’s board. Raskin has, in the Obama administration, been a governor at the Fed. She was also the Deputy Secretary of the treasury department. Dr Cook, also at the time, served in the council of economic advisers at the White House. Dr Jefferson, on the other hand, was previously a research economist at the Fed.