‘Already part of U.S. finance’ – Fed Chair nominee Kevin Warsh backs crypto

The Federal Reserve chair nominee, Kevin Warsh, has reinforced crypto as a crucial, integrated part of the current financial system. During the Senate Banking Committee hearing on the 21st of April, Senator Cynthia Lummis asked, Do you believe that digital assets should be incorporated into our financial industry so Americans have new investment opportunities and consumer protections? In response, Warsh answered,  Yes. Digital assets are already part of the fabric of our financial services industry in the United States. Well, the recent crypto ETFs have made ownership much simpler. In fact, River reported that 50 million U.S. citizens own Bitcoin, compared to 37 million golf club owners. In other words, BTC is rivaling the world’s renowned reserve asset in terms of adoption.  Reactions to Fed chair pick stance  Commenting on Warsh’s positive stance on crypto, Paul Grewal, Coinbase's legal chief, said,  Mr. Warsh gets it. His appointment as the next US Fed Chair will be a major highlight for the country and for crypto. Interestingly, Warsh’s conviction in the sector was evident by his massive exposure in a dozen crypto projects, according to a recent disclosure.  U.S. President Donald Trump nominated Warsh in January 2026 to become the next Fed chair. The current chair, Jerome Powell, whose term ends on the 15th of May, would be allowed to extend his tenure until a Senate vote confirms the new pick. Trump has always criticized Powell for being too slow to cut Fed interest rates and opted for Warsh.  However, during the hearing, Warsh denied that Trump demanded that he cut the interest rate. But Democrats were still concerned with his nomination.  Notably, top-ranking Democrat on the Senate Banking Committee, Sen. Elizabeth Warren, claimed that Warsh would become a ‘sock puppet’ for the president.  Having a sock puppet in charge of the Fed would also give the president access to the Fed's powerful authorities to enrich himself, his family, and his Wall Street buddies. She added, It could mean granting special accounts to his family's crypto company or bailouts to his friends on Wall Street if they get into trouble. Warren concluded that Warsh is ‘uniquely ill-suited’ to be the next Fed chair. She cited his role as Fed governor during the 2008 financial crisis, which bailed out big banks at the expense of ordinary citizens.   Final Summary Fed chair pick Warsh underscored crypto as a crucial integration of the financial system  However, the top-ranking Democrat Sen. Warren raised concerns about Warsh potentially being a Trump's 'sock puppet.'