President Trump named Kevin Warsh as the next chair of the Federal Reserve, passing over expectations that Kevin Hassett would get the role. The nomination immediately set off political debate in Washington, with Senator Elizabeth Warren objecting to the move and tying it to a broader fight over the Fed’s independence.
Hassett passed over as Trump explains the choice
Warren reacted soon after the announcement, saying Warsh’s nomination was another sign that Trump was trying to exert control over the central bank. She also called on Republicans to delay Warsh’s confirmation until the investigation involving Powell is resolved. Her response turned the nomination into a fresh flashpoint almost at once.
Trump addressed the speculation around Hassett directly. He said many had expected Hassett to be the preferred candidate for Fed chair, but praised his work in the White House and said his exceptional contributions were a major reason for keeping him in his current post instead of moving him to the central bank.
Crypto traders are watching Warsh’s record closely
Warsh has drawn attention from the digital-asset sector because of his past comments on cryptocurrencies. He served at the Federal Reserve from 2006 to 2011 during the administrations of George W. Bush and Barack Obama. Over time, he built a reputation for taking a relatively moderate and supportive view of crypto, which has made his nomination stand out in market discussions.
At a recent event, Warsh rejected the idea that Bitcoin poses a systemic threat to the Federal Reserve’s ability to manage the economy. He said Bitcoin should not be treated as a replacement for the US dollar, but argued that it can function as a useful regulatory tool for assessing policymakers’ decisions. That position has made him a figure of interest for the crypto industry.
Basis investment and Bitwise advisory role add to industry ties
His connection to crypto goes beyond public remarks. The report says Warsh invested in the early algorithmic stablecoin project Basis and also served as an adviser to crypto ETF issuer Bitwise. Those roles point to direct exposure to the industry rather than simple outside observation.
With the nomination now public, attention is shifting to the confirmation process and to what Warsh’s leadership could mean for how digital assets are viewed at the highest level of US monetary policy. For now, the debate is already active, and crypto participants are following it closely.