Trump Fed Chair: Key Candidates Emerge, Sparking Crypto Optimism

The political landscape often brings significant changes. Currently, the potential selection of a new Trump Fed chair is generating considerable buzz. This decision could profoundly influence financial markets, including the burgeoning cryptocurrency sector. Investors and enthusiasts are closely watching developments, anticipating how new leadership might shape economic policy. Specifically, attention centers on several crypto-friendly candidates who have publicly expressed positive views on digital assets.

The Race for Federal Reserve Leadership

The Trump administration is actively considering a list of 11 strong candidates to potentially replace Jerome Powell. Powell’s term as Federal Reserve Chair concludes in May. Treasury Secretary Scott Bessent confirmed this extensive list to Fox News on Wednesday, August 27, 2025. He indicated that the vetting and shortlisting process would begin next month, following Labor Day. Bessent emphasized that President Trump seeks a leader who can restore the Federal Reserve’s mission and credibility, holding a sophisticated view of monetary policy. This critical appointment will set the direction for the nation’s central bank for years to come.

CNBC previously reported on August 13, citing administration officials, some prominent names on this extensive list. These include:

• Dallas Fed president Lorie Logan
• Former St. Louis Fed president James Bullard
• Fed vice chair Philip Jefferson
• Fed governor Chris Waller
• Fed vice supervision chair Michelle Bowman
• Former Fed governor Larry Lindsey
• Bush administration economic adviser Marc Sumerlin
• Investment bank Jefferies chief market strategist David Zervos
• BlackRock’s chief investment officer for global fixed income Rick Rieder

These individuals bring diverse backgrounds and perspectives to the table. Their views on monetary policy and emerging technologies, such as cryptocurrencies, are under scrutiny.

Identifying Crypto-Friendly Candidates and Their Stances

Among the 11 candidates, at least three have publicly signaled a constructive stance toward crypto. This potential shift is particularly significant for the digital asset market. Their past comments and affiliations provide insight into how they might approach crypto regulation and innovation. These crypto-friendly candidates offer a glimpse into a potentially more accommodating future for the industry.

David Zervos and Jefferies’ Crypto Ties

David Zervos, Jefferies’ chief market strategist, represents an entity deeply involved in the crypto space. Jefferies, a prominent investment bank, has notably backed several crypto-tied entities. For instance, the bank supported the public debuts of trading platform eToro, stablecoin issuer Circle Internet Group, and crypto exchange Bullish. It also invested early in crypto-based lender Figure Technology Solutions. Furthermore, Jefferies made an early bet on Michael Saylor’s MicroStrategy and its substantial Bitcoin price buying ambitions. The bank has reportedly dedicated a senior banker exclusively to crypto for at least five years, demonstrating its long-term commitment to the sector.

Rick Rieder and BlackRock’s Endorsement

Rick Rieder, BlackRock’s chief investment officer for global fixed income, has also made positive remarks about crypto. In early 2024, he told The Wall Street Journal that Bitcoin could become a significant part of the asset allocation framework. He also expressed confidence that people would grow increasingly comfortable with it over time. Previously, in November 2020, Rieder told CNBC that he believed crypto and Bitcoin were here to stay. He specifically highlighted millennials’ receptivity to technology and cryptocurrency as a real phenomenon. BlackRock currently manages the largest Bitcoin and Ether exchange-traded funds (ETFs) on the market, further solidifying Rieder’s expertise and influence in the digital asset space.

Fed Governors Waller and Bowman’s Progressive Views

Two other candidates, Fed Governor Chris Waller and Fed Vice Supervision Chair Michelle Bowman, have also demonstrated a friendly approach to crypto. Bowman, a top regulatory official at the Fed, stated on August 20 that central bank staff should be permitted to invest a small amount in crypto. She argued this would help them gain a working understanding of the underlying functionality of the technology. Just a day later, Fed Governor Waller commented that the banking sector had “nothing to be afraid of” regarding crypto payments operating outside the traditional banking system. He viewed it simply as “new technology to transfer objects and record transactions.” These statements suggest a willingness to engage with and understand digital assets, marking them as key crypto-friendly candidates.

How Federal Reserve Policy Impacts Crypto and Bitcoin

The Federal Reserve plays a pivotal role in shaping financial markets through its monetary policy decisions. Specifically, the setting of US interest rates directly affects investor behavior and asset valuations. Lower interest rates typically increase market liquidity, encouraging investors to seek higher returns in riskier, more volatile assets. Cryptocurrencies, including Bitcoin, often benefit from such environments as capital flows into digital assets. Conversely, when the Fed raises interest rates, investors tend to sell off riskier bets, moving towards safer assets. This can lead to a decrease in demand and price for cryptocurrencies.

Therefore, the stance of the next Fed chair on monetary policy is critical for the crypto market. A chair who favors lower rates or a more accommodative policy could provide a tailwind for digital assets. Conversely, a hawkish stance could create headwinds. Understanding these dynamics is essential for anyone tracking the Bitcoin price and the broader crypto market.

A Potential Shift in Monetary Policy and Bitcoin Price

Jerome Powell, the current Fed Chair, has generally adopted a cautious approach to crypto. He has addressed the sector a handful of times, acknowledging its growing mainstream presence. In June, he anticipated increased engagement from banks with the crypto sector. In December, he notably described Bitcoin as more of a competitor for gold than for the US dollar. Powell’s tenure as chair ends in May, though his 14-year term on the Fed board extends until early 2028. His recent speeches, including a highly anticipated one on Friday, have often moved financial markets, sometimes sparking hopes of interest rate cuts.

The potential appointment of a new Trump Fed chair with a more open view on crypto could signal a significant shift. Such a leader might foster a regulatory environment more conducive to digital asset innovation. This could further legitimize cryptocurrencies and potentially boost the Bitcoin price. The market is closely watching these developments, recognizing the profound implications for the future of finance and digital assets. The selection process highlights the increasing intertwining of traditional finance and the crypto economy.