Pro-Crypto Bowman Leads Race for Fed Chair as Powell Exits

- Vice Chair Michelle Bowman emerges as a finalist promoting financial innovation. - Potential for crypto-friendly shifts in Federal Reserve policy under new leadership. As Federal Reserve Chair Jerome Powell's term is set to conclude in May 2026, the U.S. Treasury is evaluating several pro-crypto candidates to succeed him. This leadership transition represents an important juncture for the central bank’s policy on financial innovation and cryptocurrency adoption. On October 27, 2025, The Block reported that Treasury Secretary Scott Bessent is considering 5 finalists, with Bowman being a leading contender. She has consistently advocated for modernizing banking practices and for regulators to embrace new technologies, having previously described the Federal Reserve as being at a crossroads regarding financial innovation while emphasizing the need to move away from an overly cautious mindset. Other shortlisted candidates include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Fed Governor Chris Waller, and BlackRock’s fixed-income chief investment officer Rick Rieder, each of whom brings a distinct perspective on digital assets. For instance, Waller has stated that cryptocurrencies will transition from fringe assets to a more integral part of the financial system, while Hassett has disclosed a personal investment in Coinbase Global Inc. In addition, Rieder has noted the growing comfort among investors toward Bitcoin. Treasury Secretary Bessent will interview the finalists and deliver a recommendation to the President. The President will then formally nominate Powell’s successor, and finally, the Senate must approve the nomination. While Powell’s term as Chair ends in May 2026, he may remain on the board through 2028. This leadership transition is expected to significantly impact digital asset policies as the Federal Reserve considers how to align with rapid innovation in financial technologies.