DOJ Drops Criminal Investigation Into Powell, Clearing Path for Crypto-Friendly Warsh to Lead Fed

Gate News message, April 26 — The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, clearing the way for the Senate to confirm Kevin Warsh as the incoming central bank chair. U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure on Friday, ending the probe that was initiated earlier this year over allegations of false statements regarding the Federal Reserve's headquarters renovation.

The timing comes just days after Warsh testified before the Senate Banking Committee during his nomination hearing. Warsh, who holds dozens of crypto investments including dYdX and Dapper Labs, signaled a pro-digital-assets stance during the hearing. When asked whether digital assets are incorporated into the U.S. financial industry, Warsh responded affirmatively, stating they are "already part of the fabric of our financial services industry in the United States." The DOJ's decision removes a key obstacle for Republican Senator Thom Tillis of North Carolina, whose vote is critical for Warsh's confirmation. Tillis had previously stated he would not vote for Warsh's nomination until the investigation was dropped.

Observers suggest that Warsh's confirmation could accelerate broader crypto market legislation. Grayscale Head of Research Zach Pandl noted on Friday that once the Senate Banking Committee confirms Warsh, it could move forward with a markup of the Clarity Act, a bill that has remained stalled in the committee for the past year.