The Unlikely Crypto Ally: Why Hassett's Fed Nomination Turns Out to Matter More Than You Think

Trump’s leading Federal Reserve Chair candidate has surprising ties to digital assets—and the crypto industry is paying attention

The Federal Reserve Chair selection is entering its final stretch. U.S. Treasury Secretary Bessent announced in late November that the nomination process has narrowed to five candidates undergoing final interviews this week, with an announcement likely before Christmas. Among them, Kevin Hassett—Trump’s National Economic Council Director—has emerged as the frontrunner, commanding a 52% win probability on prediction markets.

But what’s capturing crypto industry attention isn’t just Hassett’s economic credentials. It’s his documented involvement with the cryptocurrency sector that turns out to be the real story—a connection that reveals how deeply traditional finance gatekeepers are now positioned within digital asset ecosystems.

A Policymaker With Skin in the Game

Hassett holds between $1 million and $5 million in equity stakes within major cryptocurrency platforms, compensation earned through his participation on a prominent exchange’s Academic and Regulatory Advisory Council. This isn’t theoretical interest—he’s directly embedded in governance discussions shaping how policy and innovation intersect.

The equity holdings matter because they signal more than sympathy; they demonstrate material involvement. Unlike some regulators who observe crypto from a distance, Hassett has participated in internal White House working groups on digital asset policy, advocating for regulatory frameworks that preserve space for technological advancement rather than restrictive prohibition.

His broader monetary policy positions reinforce this orientation. Hassett has consistently pushed for accelerated interest rate cuts and maintains that looser monetary conditions support asset growth—positions that have historically benefited risk-heavy markets, including cryptocurrencies.

The Economics Pedigree Behind the Views

Hassett’s trajectory explains his perspective. After earning degrees from Swarthmore College and the University of Pennsylvania, he built a career spanning academic economics, policy research, and government service. His work at leading think tanks focused on taxation, capital formation, and long-term growth dynamics.

Within Republican administrations, he served as Council of Economic Advisers Chairman under Trump (2017-2019), returned during the pandemic, and now directs economic policy for the current White House. His alignment with Trump’s economic philosophy is precise—particularly regarding monetary expansion and growth-focused policy over orthodox rate discipline.

Market reaction already reflects these expectations. After Bloomberg identified him as a leading candidate in late November, yields on 10-year U.S. Treasuries fell below 4% for the first time in a month, signaling investor confidence that his appointment would accelerate rate reductions.

Why the Fed Chair Decision Reshapes Crypto’s Future

This appointment matters to digital assets for structural reasons that extend far beyond interest rate cycles.

The incoming regulatory framework—including the GENIUS Act—will establish the Federal Reserve as the primary supervisor of stablecoin issuance beginning in 2025. As on-chain dollar reserves expand, stablecoins will function as increasingly important instruments within U.S. Treasury markets, influencing yields and capital flows throughout the financial system.

Whether traditional banking institutions and asset managers can compliantly participate in crypto businesses depends directly on Federal Reserve policy stance. The Chair’s regulatory philosophy determines whether the crypto industry remains operationally distinct or merges into mainstream financial infrastructure.

Hassett’s documented comfort with digital asset innovation—combined with his preferences for monetary accommodation—positions him as potentially the most crypto-receptive candidate among the finalists. His appointment wouldn’t guarantee favorable policy, but it would materially reshape how regulatory agencies approach the sector’s integration into conventional finance.

That structural reality is why the crypto industry turns out to care significantly about this Federal Reserve decision.