Trump’s Fed Chair Nominee Kevin Warsh Supports Crypto Role, Rejects CBDC

• Kevin Warsh supports crypto integration, calling digital assets part of U.S. finance while holding exposure to multiple blockchain firms.
• He rejects a U.S. CBDC, citing policy concerns, aligning with lawmakers wary of surveillance and central bank control.
• Senate scrutiny focuses on Fed independence, with delays tied to political pressure and ongoing investigations around leadership.

Kevin Warsh faced questioning Tuesday before the Senate Banking Committee as President Donald Trump’s Federal Reserve nominee. Lawmakers pressed him on crypto, policy independence, and political influence during the hearing. Warsh confirmed digital assets already shape U.S. finance and backed their integration, while rejecting a central bank digital currency amid rising scrutiny.

Crypto Stance Draws Clear Response

Senator Cynthia Lummis asked whether digital assets should expand investment access while ensuring protections. Warsh responded that crypto already forms part of U.S. financial infrastructure.

“Digital assets are already part of the fabric,” Warsh said during the exchange. His answer placed crypto within existing financial systems rather than outside them.

Notably, disclosures showed Warsh holds exposure to multiple crypto-related firms and tokens. These include dYdX, Lighter, Polychain, Dapper Labs, Solana, and Optimism.

Earlier remarks also described bitcoin as an important asset for policymakers. This context shaped his responses during the hearing.

CBDC Concerns and Policy Independence 

However, Warsh took a different position on central bank digital currencies. Speaking to Senator Bernie Moreno, he called a U.S. CBDC a “bad policy choice.”

That view aligns with concerns about financial surveillance raised by several lawmakers. Meanwhile, the discussion shifted toward Federal Reserve independence.

Warsh stated his Fed would remain independent from the White House. Still, lawmakers questioned whether political pressure could influence decisions.

Senator Elizabeth Warren warned against leadership aligned too closely with President Donald Trump. She argued such alignment could affect how the Fed uses its authority.

Political Pressure and Nomination Uncertainty 

The hearing unfolded amid broader tensions around monetary policy and leadership control. President Trump has repeatedly criticized current Chair Jerome Powell over interest rates.

Additionally, a Department of Justice probe involving Powell has added pressure to the confirmation process. This issue influenced lawmakers’ positions during the session.

Senator Thom Tillis said he would delay support until the investigation concludes. However, he noted a generally favorable view of Warsh.

Senator Ruben Gallego also questioned Warsh about reports of discussions on rate cuts. Warsh denied any commitments, stating no demands were made.

The hearing continued as lawmakers weighed crypto policy alongside broader concerns over central bank governance.

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