President Joe Biden has recently nominated two people to key positions on the Federal Reserve Board, Philip Jefferson and Adriana Kugler, as well as renominating Lisa Cook for a full term. If confirmed, Jefferson would serve as the Fed vice chair until 2036, whilst Kugler and Cook, who have respectively been Chief Economist at the U.S. Department of Labor and Fed governor, would be in their current positions until 2037 and 2024 respectively. The nominations are still subject to a full Senate vote, with House Financial Services Committee chair Patrick McHenry, a Republican, describing the nominees as “seasoned economists.”

Given the choice of nominees and the roles they will assume, the potential impact for cryptocurrency and blockchain are great. The decision could significantly influence how the U.S. government considers treatments for cryptocurrencies and Defi, particularly in the potential issuance of a central bank digital currency. In the past, there have been calls for a federal-issued CBDC and criticisms against it, such as those recently voiced by Governor Ron DeSantis of Florida.

Nevertheless, lawmakers have continued to show support and recognition for digital currency, such as in an article published by the Federal Reserve Bank of St. Louis titled "The Fed’s Take on Cryptocurrency." Here, the Fed acknowledges that although digital currency has yet to have a significant impact on the market, it has “the potential to make a small but meaningful addition to the suite of payment services that consumers can use to purchase goods and services and to send money to other people.” With a supportive government at the helm, the future of digital currency in America is certainly looking promising.



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