DOJ Drops Criminal Investigation Into Fed Chair Powell, Clearing Path for Crypto-Friendly Kevin Warsh

Gate News message, April 24 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to Senate confirmation of incoming Fed chair Kevin Warsh. U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure on Friday (April 18) in a post on X, ending the probe that was initiated earlier this year over allegations of false statements regarding the renovation of the Federal Reserve's headquarters.

Warsh, who holds dozens of crypto investments including dYdX and Dapper Labs, testified before the Senate Banking Committee during his nomination hearing just days before the DOJ's announcement. When asked whether digital assets were incorporated into the financial industry, Warsh stated they were "already part of the fabric of our financial services industry in the United States," signaling a notably crypto-friendly stance for the central bank's leadership.

The DOJ's decision is expected to secure support from Sen. Thom Tillis (R-N.C.), whose vote is critical for Warsh's confirmation. Tillis had previously stated he could not support Warsh's nomination until the investigation was dropped. Industry observers, including Grayscale Head of Research Zach Pandl, have noted that Warsh's confirmation could accelerate broader crypto market legislation, particularly the stalled Clarity Act, which has been stuck in the Senate Banking Committee for over a year.