Kevin Warsh, nominated by President Donald Trump to lead the Federal Reserve, told senators on April 21 that crypto has already been “woven into the fabric of the financial system”. His remarks framed digital assets as part of existing financial infrastructure rather than a purely speculative corner of the market.
Warsh says crypto is no longer outside the system
Answering questions about digital asset risks during his confirmation hearing, Warsh said crypto is not a future concept waiting to arrive. It is already here. In his view, it has become part of modern finance and cannot be treated as a marginal theme anymore.
Warsh has previously described Bitcoin as the “new gold” for people under 40 and once referred to it as the newest and coolest software. He kept that tone at the hearing. The point he made was clear: crypto’s role now extends beyond speculation and into more established financial use cases.
Disclosure shows exposure to more than 30 crypto-related assets
His financial disclosures also drew attention. According to the material presented, Warsh indirectly holds interests in more than 30 crypto-related assets through venture capital funds. The list includes Solana, dYdX, Compound and Optimism. No specific holding amounts were disclosed in the source material.
Warsh told the committee he would sell all related holdings before formally taking office in order to comply with Federal Reserve rules. That commitment is aimed at removing possible conflicts before he takes part in monetary policy decisions.
Firm rejection of a Fed-issued digital dollar
Warsh also took a direct position on central bank digital currency. He said a CBDC issued by the Federal Reserve is “not a good policy choice”, adding that he believes the Fed does not have the authority to issue one.
That view matches the stance described in the source material as aligned with the Trump administration. It also points to a policy environment in which private-sector crypto development would retain more room if the Fed stays away from launching a digital dollar.