Fed Chair Nominee Kevin Warsh Backs Crypto Integration, Opposes CBDC

Gate News message, April 22 — Kevin Warsh, President Trump's nominee to lead the Federal Reserve, told the Senate Banking Committee that digital assets are "already part of the fabric of our financial services industry in the United States" and should be incorporated to expand investment opportunities and protections. Warsh's term as Fed chair would begin after Jerome Powell's scheduled departure on May 15.

When questioned about a central bank digital currency (CBDC), Warsh said issuing one would be a "bad policy choice" and indicated he would not pursue one while serving as Fed chair. His stance aligns with the Trump administration's skepticism toward a U.S. CBDC while supporting private digital-asset markets. Warsh framed crypto as a financial-sector reality that regulators should incorporate rather than resist, potentially favoring market-led innovation over direct central bank competition with commercial payment systems.

Financial disclosures released April 14 revealed Warsh holds household assets exceeding $100 million, including crypto-linked investments across DeFi, blockchain networks, Bitcoin infrastructure, and Web3 companies. Senator Elizabeth Warren questioned whether Warsh could act independently given his financial interests, raising concerns about potential special treatment for politically connected crypto businesses. Warsh responded that the president had never asked him to commit to any interest-rate decision and stated he would not agree to do so if asked.