Trump has planted “encrypted friendly forces” as the Federal Reserve’s transitional director. What is the impact

On Thursday local time, just as Wall Street approaches the close of trading, US President Trump announced on Truth Social that he would appoint Stephen Miran, chairman of the White House Economic Advisory Council (CEA)FedThe director will replace Adriana Kugler, who left the office not long ago, with his term of office tentatively scheduled until January 31, 2026.

According to Politico, the White House was not ready to announce arrangements for current Fed Chairman Powell’s successor. Milan’s move is both a “window filling” and a “political signal.”

Will this short “Federal audition” become an unexpected booster for the crypto industry?And at a time when the Fed’s expectation of a rate cut is intertwined with the weakening trend of the US dollar, what does Trump’s move to appoint Milan mean?

Who is Stephen Miran?Encrypted “friendly forces” from Harvard to the White House

Stephen Miran has a background in economics at Harvard University and has a career spanning investment and policy fields.Prior to joining Trump’s team, he served as an investment partner at Amherst Peak Advisors and served as a senior strategist at Hudson Bay.It is worth noting that Hudson Bay is deeply involvedFTXDebt Transactions after Bankruptcy – The cryptocurrency exchange went bankrupt at the end of 2022, its founderSam Bankman-FriedIn November 2023, he was sentenced to 25 years in prison for seven counts, including telecom fraud.

After joining Trump’s camp in 2023, Miran quickly made his mark and became chairman of the White House Economic Advisory Council (CEA) in March 2025.As a typical conservative economist, he firmly supports Trump’s tariff policy and has repeatedly advocated “lower interest rates” and “reevaluating strong dollar policies.”

In the cryptocurrency space, Miran has shown a rare open attitude.In December 2024, Stephen Miran, as the then chairman of the White House Economic Advisory Council (CEA), was invited to participate in the famous financial podcast “Forward Guidance” and had a conversation with host Joseph Wang (former New York Fed trader Fed Guy). In the second half of the show, Miran talked about the problems caused by the chaos in cryptocurrency regulation and said bluntly:

“Maybe we should really simplify a lot of regulation and let innovative industries like crypto really land.”

At that time, the US crypto regulation was in chaos.SECandCFTCThere is no dispute over token classification.CoinbaseandBinanceThe case has not yet been concluded.Milan’s remarks were regarded by many industry insiders as “the first time the White House has sent out friendly signals.”As the chairman of the CEA, although his views do not have legislative power, they have a “barometer” significance in policy trends and regulatory discussions.

It is worth noting that Miran is not blindly supporting the crypto industry. He opposes the current reality of fragmentation of regulation, repeated approvals and vague laws, rather than the regulation itself.He pointed out on the show:

  • The current dispute between SEC and CFTC on the attributes of crypto assets (securities vs. commodities) has seriously affected the compliance operations of innovative companies;

  • The White House should promote a more coordinated regulatory framework that “makes entrepreneurs clear about the compliance roadmap”;

  • Supervision that is truly beneficial to innovation is not “no supervision”, but “clear rules and clear rights and responsibilities”.

This view, unlike traditional crypto extremists, is closer to institutional compliance crypto supporters – such as Coinbase CEOBrian Armstrong– The path that has always been advocated.

According to Coindesk, Milan has also privately participated in discussing the ambiguity of the SEC and CFTC in token regulatory classification.

If Milan continues to publicly express his attitude towards rationalizing cryptocurrency during his term as the Fed, even if it does not have a direct impact on policy formulation, it may become an important catalyst for market sentiment, and even form a voice accumulation of “potential director candidates” after 2026.

Federal Reserve Policy: “Enter” for interest rate cut advocates

“He’s just here to Werve in,” commented Mark Spindel, author of Fed Independence. “He left after a few meetings.”

Indeed, in terms of time, Milan has participated at most three Federal Open Market Committee meetings—September, October and December—with extremely limited structural impact on the full-year interest rate path.

But this does not mean that Milan’s voice is meaningless.In the second half of 2025, when the interest rate game is gradually becoming fierce, a voting right of the board of directors is enough to make the market nervous.At the monetary policy level, Milan is a typical Trump-based economist: supporting “Made in the United States”, questioning the strategy of strengthening the dollar, and advocating interest rate cuts to stimulate growth.

During the period from 2023 to 2024, he wrote articles and public speeches many times, pointing out that the Federal Reserve’s continued high interest rate policy is “extremely unfavorable to US manufacturing and exports” and called for “more active monetary policies to cooperate with industrial policies.”He is also a very few senior officials who publicly stated during his tenure that “the strong dollar is not conducive to national interests.”

This resonates with Trump’s continued criticism of Powell.Trump himself has complained many times in public: “Powell screwed up everything, and high interest rates made the United States lose its competitiveness.” Milan endorsed this view from an academic level, strengthening the White House’s position of “interest rates should obey growth goals.”

Although Milan is unlikely to change the Fed’s interest rate path in the short term, if it promotes the argument that “inflation is under control and employment and investment should be paid attention to” within the Fed, it will undoubtedly provide the market with new policy imagination space.Especially in the context of the current high U.S. Treasury bond interest rates and weakening U.S. dollar index, the “return to interest rate cuts” is becoming the focus of the capital market.

Since the beginning of this year, the US dollar’s safe-haven attributes are facing unprecedented challenges.according toFactSetdata,In the first half of 2025, the US dollar index (DXY) fell more than10%, the weakest performance in the first half of the year since 1973.The US dollar, which used to strengthen during the financial market volatility period, is now rising with long-term US Treasury yields, showing an “abnormal” characteristic that only emerging markets have.

Some analysts pointed out that Milan’s challenge to the “strong dollar consensus” is forming the “preliminary form of a new consensus.”In a paper, he questioned: “Is the strong dollar really a national interest? Should we consider a more flexible exchange rate mechanism for export-oriented manufacturing?” This kind of view is gradually gaining the upper hand within the Trump administration.

How should the crypto market view Milan’s entry?

For the crypto industry, Miran’s temporary rise may mean:

  • The policy atmosphere becomes warmer: His stance reinforces White House interest in encryption and may also drive clearer regulatory integration.

  • Risk asset sentiment warms up: If he pushes for interest rate cuts or guides easing expectations, risky assets such as BTC and ETH will directly benefit.

  • US dollar trend affects stablecoins and cross-border payment paths: The weak dollar strategy will increase the attractiveness of crypto assets in international payments.

Although Milan is not a lawmaker and cannot change the Fed’s route alone, his views are already shaping the macro-emotional framework for the second half of 2025.AsA policymaker who is a scholar, his real stage may be much more than this five-month short stage.

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