Kevin Warsh, President Donald Trump’s nominee to lead the Federal Reserve, told the Senate Banking Committee on Tuesday that digital assets are already embedded in the U.S. financial system. He backed their integration into existing finance, but drew a firm line against a U.S. central bank digital currency, calling it a “bad policy choice.” Senators used the hearing to press him on crypto, Fed independence, and whether political pressure from the White House could shape monetary decisions.
Warsh says crypto already sits inside U.S. finance
During an exchange with Senator Cynthia Lummis, Warsh was asked whether digital assets should expand access to investment opportunities while keeping protections in place. His reply was clear. He said “digital assets are already part of the fabric”, framing crypto as part of the current financial structure rather than an external or fringe market.
That answer fit with his earlier remarks on bitcoin. The report notes that Warsh had previously described bitcoin as an important asset for policymakers, and that context shaped how lawmakers interpreted his testimony.
Financial disclosures show exposure to multiple crypto firms and tokens
Lawmakers also had Warsh’s disclosures in view during the hearing. Those filings showed exposure to several crypto-related firms and tokens, including dYdX, Lighter, Polychain, Dapper Labs, Solana, and Optimism. The disclosures added another layer to the debate, because senators were not only evaluating his views on the sector but also his direct financial links to it.
The source material does not give position sizes or the timing of those holdings. What it does establish is that Warsh’s involvement with crypto is not limited to public commentary.
Rejects a U.S. central bank digital currency
Warsh took the opposite stance on CBDCs when Senator Bernie Moreno raised the issue. He said a U.S. CBDC would be a “bad policy choice”. That position lines up with concerns voiced by several lawmakers who argue that a government-issued digital dollar could expand financial surveillance and concentrate too much power at the central bank level.
His testimony drew a sharp distinction between two policy tracks: crypto assets belong in the financial system as it exists today, while a U.S. CBDC should not move forward. That split defined the core of his digital asset message before the committee.
Questions on Fed independence overshadow part of the hearing
Crypto was only one part of the session. Senators also turned to the Federal Reserve’s independence and whether Warsh could resist political influence if confirmed. Warsh said his Fed would remain independent from the White House. Even so, lawmakers kept probing.
Senator Elizabeth Warren warned against leadership that is too closely aligned with Trump, arguing that such alignment could affect how the Fed uses its authority. The concern came against a broader backdrop: Trump has repeatedly criticized current Chair Jerome Powell over interest rates, making the confirmation fight about more than personnel.
Confirmation pressure builds as investigation and rate-cut questions surface
The process is also being shaped by an ongoing Department of Justice probe involving Powell, according to the report. That investigation has added pressure to the confirmation track and influenced how some senators approached the hearing.
Senator Thom Tillis said he would hold off on support until the investigation is complete, though he added that his overall view of Warsh remained favorable. Senator Ruben Gallego questioned Warsh over reports about discussions tied to rate cuts. Warsh denied making any commitments and said no demands had been made.
By the close of the hearing, the debate around Warsh had widened well past crypto alone. His support for digital assets, opposition to a CBDC, and assurances on Fed independence were all weighed at the same time as senators examined the political setting around the nomination.