Kevin Warsh was confirmed as Federal Reserve chair after disclosing investments tied to crypto projects and tokens.
Crypto News
The US Senate voted 54-45 on May 13 to confirm Kevin Warsh as the next chair of the Federal Reserve. Warsh will succeed Jerome Powell, whose term as chair officially ends on May 16. Powell has reportedly indicated he intends to remain on the Fed's board of governors until 2028.
The Senate had voted 51-45 on May 12 to confirm Warsh as a member of the Fed's Board of Governors for a 14-year term. Warsh previously served on the same board from 2006 to 2011 under Presidents George W. Bush and Barack Obama, and earlier worked as a banker at Morgan Stanley.
Crypto Portfolio Disclosed During Nomination
Financial disclosures submitted during the nomination process showed that Warsh holds investments tied to several crypto companies and projects. Those holdings include decentralized derivatives exchange dYdX, decentralized exchange protocol Lighter, venture capital firm Polychain Capital, NFT company Dapper Labs, and direct token exposure to Solana (SOL) and Optimism, among others.
Warsh has made mixed public statements about digital assets. He previously called some crypto projects fraudulent and worthless, but also described Bitcoin (BTC) as "an important asset that can help inform policymakers" and said earlier in 2026 that Bitcoin "does not make me nervous."
Senator Cynthia Lummis (R-WY), a vocal advocate for digital assets in Congress, welcomed the confirmation result. She wrote on X that "American businesses and digital asset holders finally have a leader at the Fed who is ready to deliver it."
DOJ Investigation Into Powell Closed Before Vote
The confirmation process was complicated by a Department of Justice criminal investigation into outgoing chair Powell, centered on allegations of false statements related to a renovation of the central bank's headquarters. US Attorney Jeanine Pirro announced in April 2026 that the investigation was being dropped and referred to the Fed's inspector general instead. The closure of that probe removed a political obstacle that had stalled support for Warsh's nomination among some officials.
Warsh also faced pointed questioning during his Senate Banking Committee hearing about interest rate policy. That subject had grown increasingly contentious between President Donald Trump and Powell, with Trump publicly pressuring Powell and attempting to remove both Powell and Federal Reserve Governor Lisa Cook from their positions in 2025. The price of Bitcoin held near $79,500 in the hours following the Senate vote, showing little reaction to the confirmation.
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