• Kevin Warsh made several pro-crypto statements today, plus a commitment to divest his $100M crypto portfolio if sworn in.

• The nominee distanced himself from Trump’s influence while calling for reforms to the Fed’s operations.

  

• A DoJ probe has caused uncertainty in the timing of events leading up to Warsh’s assumption of office.

  

US Federal Reserve Chair nominee Kevin Warsh answered several questions today regarding cryptocurrencies, monetary policy, and the Fed’s independence during his Senate Banking Committee confirmation hearing.

Senate grills Warsh on cryptocurrencies

During the nearly 3-hour public session, pro-crypto Senator Cynthia Lummis questioned whether digital assets should be incorporated into the financial system to give Americans more investment options and consumer protections. Warsh’s response was this:

“Digital assets are already part of the fabric of our financial industry, so yes.”

This statement has widely been interpreted as crypto-advocacy rather than a hostile stance.

Aside from that, Warsh’s financial disclosures previously revealed a $100 million crypto portfolio. He has stakes in Solana, dYdX, Bitwise, Flashnet, and 20 other crypto projects.

On this point, senators raised concerns about potential conflicts of interest in crypto policy formation. His response was a commitment to divest the majority of his financial assets before being sworn in.

Fed independence

Senator Elizabeth Warren questioned Warsh regarding Fed independence, to which he emphasized that he would not be Trump’s “sock puppet,” despite receiving the President’s public endorsement for the position.

As for the Fed’s operations, he called for? “a new and different inflation framework,” with less premature Fed commentary regarding interest rates.

What next?

Warsh now awaits written follow-up questions from senators, with his response due April 23. 

Afterward, there will be a committee vote on advancing the nomination, followed by a full Senate vote. The timing of these last two events remains uncertain due to the prevailing Department of Justice (DoJ) probe into the Fed’s $2.5 billion headquarters renovation. They may, however, take place before the end of Jerome Powell’s 8-year term on May 15, 2026.

Crypto market reaction

Crypto markets experienced little downward pressure, with the overall market cap down 0.25% to $2.54 trillion. Bitcoin dropped 1% over the last 24 hours, trading at $75,451.