The Trump administration is busy sorting through at least 11 candidates to replace Jerome Powell when his term as Federal Reserve chair expires in May. But at least three of them are crypto-friendly. Yup, crypto might be getting some Fed love.
Treasury Secretary Scott Bessent spilled the beans to Fox News, saying he’ll start vetting and shortlisting these “very strong candidates” next month. So, who’s in the running? According to CNBC, we've got Dallas Fed President Lorie Logan, former St. Louis Fed President James Bullard, and a mix of big names like Fed Vice Chair Philip Jefferson, Governor Chris Waller, and former Fed Governor Larry Lindsey.
The list also includes Marc Sumerlin, a Bush administration economic adviser; Jefferies' David Zervos; and Rick Rieder from BlackRock. Rieder's not just any candidate, he’s already made waves in the crypto world.
Rieder's Crypto Love Affair
Rieder, who serves as BlackRock’s chief investment officer for global fixed income, has been all about crypto for a while. Back in early 2024, he told The Wall Street Journal that Bitcoin is probably “here to stay.” He’s even gone as far as saying that millennials are totally embracing crypto. He also praised Bitcoin’s potential as a mainstay in asset allocations. It’s safe to say, BlackRock's got skin in the game, they run the largest Bitcoin and Ether exchange-traded funds on the market.
Waller and Bowman’s Crypto-Friendly Stance
Meanwhile, we’ve got the Fed’s Waller and Bowman, both of whom have been pretty chill with crypto lately. Bowman, the Fed’s top regulatory official, even suggested that the central bank’s staff should dip their toes into crypto to “understand the technology” better. Waller echoed similar vibes, reassuring the banking sector that crypto payments outside the traditional system aren’t anything to fear, it’s just “new technology.”
Now, compare that to Powell, who’s usually been a bit more cautious with crypto. He’s acknowledged crypto’s growing mainstream presence, but he’s also called Bitcoin more of a gold competitor than a dollar rival.
Jefferies and the Crypto Connection
And let’s not forget Jefferies, the investment bank where Zervos is making waves. They’ve been all in on crypto, backing platforms like eToro, Circle Internet Group, and Bullish, as well as crypto-lender Figure Technology Solutions. Oh, and they were early supporters of Michael Saylor’s Bitcoin buying spree with his company, Strategy. They’ve even had a senior banker solely dedicated to crypto for the last five years.
Powell’s reign as Fed chair is up in May, but he’s still got a spot on the Fed board until 2028. Will we see a new crypto-friendly face take charge? Time will tell—especially with all eyes on the Fed’s expected interest rate cut next month.
Anastasiia G
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