"Senate Advances Miran as Crypto Tensions and Fed Independence Hang in Balance"

The U.S. Senate Banking Committee has advanced the nomination of Stephen Miran to a temporary position on the Federal Reserve Board of Governors. The vote, which occurred along party lines with a 13–11 outcome, sent Miran’s nomination to the full Senate for consideration. All 11 Democratic members of the committee voted against the nomination, while the 13 Republican members supported it. If confirmed, Miran will fill the seat vacated by Adriana Kugler, whose term ends on January 31. Miran, a former chair of the Trump administration’s Council of Economic Advisors, has not made significant public statements on crypto or blockchain since joining the administration, but previously indicated support for digital assets, noting in a December interview that “crypto has a big role potentially to play in innovation”.

Miran’s nomination comes amid broader political tensions involving the Federal Reserve. Earlier in August, President Donald Trump issued a letter demanding the immediate removal of Fed Governor Lisa Cook, citing allegations of mortgage fraud. Cook refused to step down, and a federal judge in the District of Columbia ruled against Trump’s attempt, stating that no cause for dismissal had been established. The administration filed an appeal, highlighting the ongoing debate over the independence of the Federal Reserve and the executive branch’s influence over its operations.

Alongside these developments, the Trump administration has continued to push forward with its cryptocurrency agenda. Patrick Witt, the new White House liaison to the crypto industry, has taken over from Bo Hines, who previously served in the role before moving to Tether. Witt outlined his three main priorities: advancing the Senate’s market structure bill, implementing the recently passed stablecoin law, and establishing a U.S. bitcoin stockpile. He emphasized the importance of bipartisan cooperation in passing the Senate Banking Committee’s draft bill, noting that it has “shown significant improvements” compared to earlier versions.

A key initiative under Witt’s oversight is the development of a Bitcoin Strategic Reserve, which would involve the long-term investment of government-seized bitcoin. While the Treasury Department has begun exploring the legal and logistical aspects of creating such a reserve, Witt acknowledged that challenges remain in defining the legal framework for the initiative. He also noted that the administration is considering creative ways to expand the reserve beyond initial seized assets, though no specific methods have been disclosed.

Witt’s experience in both public and private sectors, including stints at McKinsey & Co., the Office of Personnel Management, and the Department of Defense, may aid in implementing the newly passed stablecoin law. He has expressed confidence that the Senate’s proposed market structure bill will ultimately gain bipartisan support, as was the case with the GENIUS Act, a stablecoin law that passed with wide support in the House of Representatives.

The Federal Reserve is also preparing for a conference in October focused on payments innovation, including discussions around stablecoins and tokenization. This aligns with broader efforts by the administration and regulators to explore the role of digital assets in the evolving financial landscape.

The Senate is expected to vote on Miran’s nomination in the coming weeks, with confirmation likely contingent on the broader political climate and the outcome of ongoing legal challenges involving the Federal Reserve. The advancement of Miran’s nomination and the continued momentum in U.S. crypto policy underscore the Trump administration’s commitment to positioning the U.S. as a leader in digital asset innovation.