Federal Reserve chair nominee Kevin Warsh told the Senate Banking Committee that digital assets are already embedded in the U.S. financial services industry and should remain part of the system with consumer protections and proper safeguards in place. The statement stood out as one of his clearest public positions on crypto to date.
Answering a question from Sen. Cynthia Lummis on whether digital assets should be incorporated to broaden investment access while protecting consumers, Warsh endorsed the idea directly. He said digital assets are already part of the fabric of the U.S. financial services industry.
Warsh draws a clear line on crypto policy
The hearing offered a sharper view of how Warsh could approach crypto if confirmed. The former Fed governor served from 2006 to 2011 under Presidents George W. Bush and Barack Obama. The report noted that he has previously described bitcoin as an “important asset” that can help inform policymakers, a position that fits with his comments at the hearing.
Financial disclosures released before the session added detail to his exposure to the sector. The holdings included interests tied to decentralized derivatives platform dYdX, exchange protocol Lighter, venture firm Polychain, NFT company Dapper Labs, and tokens including Solana and Optimism. Those disclosures gave lawmakers and market observers more to examine as the nomination moves forward.
Opposition to a U.S. central bank digital currency
Warsh took a much harder line on central bank digital currencies. In response to Sen. Bernie Moreno, he dismissed the idea of a U.S. CBDC and called it a “bad policy choice”. That view matches concerns raised by several lawmakers who argue that a government-issued digital currency could widen financial surveillance.
His testimony set out a distinction between privately issued digital assets operating within the financial system and a state-backed digital dollar. He supported the first path and rejected the second.
Nomination battle extends beyond monetary policy
Warsh’s nomination is unfolding in a politically charged setting. President Donald Trump selected him earlier this year after repeatedly criticizing current Chair Jerome Powell over interest rate policy. At the same time, a Justice Department investigation tied to alleged false statements about a renovation project at the Fed headquarters has added pressure around the process.
Lawmakers used the hearing to press concerns over central bank independence and political influence. Sen. Elizabeth Warren warned that leadership too closely aligned with the White House could create openings for abuse of authority. She said that could include granting special accounts to the president’s family crypto company or to Wall Street allies.
Support from Republicans is not fully settled either. Sen. Thom Tillis said he would withhold his vote until the Justice Department probe involving the Fed is resolved, even while speaking favorably about Warsh personally. The nomination fight is now running alongside broader congressional debates over crypto regulation, market structure, and political ties to digital asset ventures.