What crypto expects as Kevin Warsh is sworn in

Seasoned crypto investor Kevin Warsh took his oath as the 17th Chair of the world’s most powerful central bank this morning. President Donald Trump presided over the oath at the White House, the first such ceremony there since Alan Greenspan’s initiation in 1987. 

Crypto investors are excited.

Warsh is 56 years old and disclosed roughly $190 million worth of assets earlier this year, including stakes in more than 20 crypto projects.

Jerome Powell, his predecessor, had very little interest in crypto and no disclosed crypto investments.

Warsh’s Office of Government Ethics disclosure from April, in stark contrast, was 69 pages long. It cataloged joint holdings with his wife, Estée Lauder heiress Jane Lauder.

Two positions in Stanley Druckenmiller’s funds were worth more than $50 million apiece.

A diversified investor, Warsh’s crypto exposure is smaller by allocation yet broad in scope. His disclosure names Solana, Optimism, dYdX, Compound, Polychain, Polymarket, DeSo, and Flashnet. Warsh holds most of these positions through the venture vehicles.

He’s committed to divest any conflicting positions and will also accept a one-year cooling-off period to ensure his investment management practices are long-term oriented. 

Crypto enthusiasts interpreted his portfolio as a resume.

Warsh’s Senate confirmation vote was a slim 54-45, the narrowest margin for an incoming Fed chair since at least the 1970s.

Fascinating Kevin Warsh quotes about crypto

Not only because of his extensive crypto portfolio, fans point to Warsh’s pro-easing and pro-liquidity stances as bullish catalysts for inflows into the crypto sector. 

For example, at his April 21 hearing before the Senate Banking Committee, Warsh blamed pandemic-era inflation on “the fatal policy error going back four or five years,” a direct attack on Powell.

He’s also called inflation a “choice” and described the Fed’s overgrown balance sheet, which once peaked near $9 trillion, as “fiscal policy” in disguise.

Specifically on the topic of crypto, Warsh said in a May 2025 Hoover Institution interview that bitcoin “can often be a very good policeman for policy.”

He floated similar logic in a 2018 Wall Street Journal (WSJ) op-ed, comparing the asset to gold.

In that same Hoover Institution interview, Warsh continued, “I think of [bitcoin] as an important asset that can help inform policymakers when they’re doing things right and wrong.”

No US dollar CBDC (except, maybe, for wholesale?)

Like most senior members of the US government, Warsh is generally opposed to a US dollar central bank digital currency (CBDC).

In response to a question by Senator Bernie Moreno in April 2026 as to whether the Fed could legally issue a retail CBDC, Warsh replied, “they don’t have the right and I think it would be a bad policy choice.”

He further agreed to a follow-up question that he would oppose any exploration of a CBDC to the full extent of his power as Fed chair.

Interestingly, in a 2022 WSJ op-ed, Warsh advocated for a digital dollar for wholesale transactions in order to remain competitive with China.

Indeed, a direct quote from Warsh from 2022 remains in print. He said, “The US should announce the essential design features of a digital dollar to be used exclusively for wholesale transactions,” which is apparently superseded by his April 2026 promise above.

Read more: Crypto wants Trump to replace Jerome Powell with a pro-stimulus Fed chair

What the crypto industry expects from Kevin Warsh

During the early days of Warsh’s term, crypto traders are hopeful that he’ll pump their bags. 

Obviously, they hope he’ll quickly cut the Fed’s benchmark interest rate to ease liquidity conditions and encourage speculative inflows.

Moreover, stablecoin issuers such as Standard Custody & Trust are hopeful that Warsh will approve their Fed master account banking applications. All stablecoin issuers also hope he holds to his anti-CBDC promise, so that they can continue to compete in the marketplace with their private US dollar proxies. 

Prediction markets are also interested in anything Warsh can do to keep regulators from impeding their growth.

Today, the same morning Trump swore Warsh in, the House Oversight Committee opened an insider-trading investigation into Polymarket and Kalshi, demanding documents from Shayne Coplan and Tarek Mansour.

Warsh’s own divested Polymarket investment still sits in the disclosure record. Perhaps he could make some phone calls to calm things down.

The new US central bank chairman will probably spend his first month telling crypto fans that his Fed will be smaller, friendlier, and less inflationary than under Powell. Time will tell if he follows-through on any of their aspirations.

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