Fed Nominee Warsh Holds ₱7.81 billion ($130 million) in Crypto
During Tuesday's Senate Banking Committee hearing, Trump's Fed chair nominee Kevin Warsh faced questions about his independence after the president stated interest rates will drop 'When Kevin gets in.' Warsh defended his autonomy despite disclosing over ₱7.81 billion ($130 million) in crypto holdings.
Key Takeaway
A crypto-friendly Fed chair with ₱7.81 billion ($130 million) in digital assets could reshape U.S. monetary policy.
Trump's Federal Reserve chair nominee Kevin Warsh told senators he's no presidential puppet despite holding crypto investments worth over ₱7.81 billion ($130 million) and facing questions about his independence.
Senator Elizabeth Warren cited Trump's statement from last week that interest rates will drop 'When Kevin gets in' and reminded the committee that Trump once said 'anybody that disagrees with me will never be Fed chairman.' Warsh pushed back hard, saying Trump never asked him to predetermine any interest rate decision and that he's committed to keeping monetary policy strictly independent.
Outgoing Fed Chair Jerome Powell's criminal investigation by the Justice Department hung over the hearing. Republican Senator Thom Tillis praised Warsh's credentials as impeccable but said he'd only support the nomination if the DOJ drops its probe of Powell, which Powell himself calls politically motivated. Powell's term expires in May.
During the hearing, Warsh disclosed stakes in more than two dozen crypto ventures including direct blockchain holdings in Solana, Optimism, Blast and Zero Gravity, plus positions in DeFi lender Compound and derivatives platforms dYdX and Lighter. On crypto policy, Warsh acknowledged that digital assets are already part of the fabric of America's financial services industry. He told Senator Cynthia Lummis he opposes central bank digital currencies so long as the decision stays within the Fed chair's power.
Bitcoin evangelist Michael Saylor predicted before the hearing that Warsh would be the first pro-Bitcoin Fed chairman if confirmed. Warsh made a divestment deal with the Office of Government Ethics and currently lectures at Stanford Graduate School of Business after serving on the Fed's Board of Governors from 2006 to 2011.
This article was written based on reporting from Dlnews.
