What Trump’s Fed Pick Kevin Warsh Means for Crypto
Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor and investment banker, to succeed Jerome Powell as Chair of the U.S. Federal Reserve. The announcement comes amid declining cryptocurrency markets and shifting investor expectations about future Fed interest rate policies. Warsh is viewed as more hawkish than Powell, having criticized previous policies like quantitative easing and called for changes at the Fed. His nomination raises uncertainty regarding future rate policies and their effect on risk assets like cryptocurrencies, which tend to decline when rates are high and liquidity is tighter. Warsh previously expressed skepticism toward much of the cryptocurrency industry, calling many projects “fraudulent” and “worthless,” but also advocated for a U.S. central bank digital currency (CBDC) to counter China's e-yuan—a position at odds with Republican sentiment. He has more recently acknowledged Bitcoin’s role as a check on policymakers, suggesting a nuanced stance toward digital assets. His appointment introduces policy uncertainty, affecting both traditional and crypto markets.
