Incoming Fed Chair's Crypto Investments Revealed

Kevin Warsh, the nominee for Federal Reserve chair, has filed his financial disclosure, revealing a vast portfolio that includes significant investments in the crypto industry. The 69-page document, submitted to the US Office of Government Ethics, discloses combined assets of at least $192 million with his wife. Notably, Warsh holds equity positions in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure. He has promised to divest most of these holdings. The disclosure provides insight into Warsh's personal investments, which could influence his regulatory decisions as Fed chair, particularly regarding stablecoin regulation and central bank digital currency. Warsh's crypto holdings are primarily concentrated in two fund structures: DCM Investments 10 LLC and a series of funds labeled AVF. The holdings include stakes in DeFi protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, and crypto investment infrastructure. While the size of these holdings is largely unclear, Warsh has pledged to sell the majority of them. The mandatory divestiture and recusal obligations may constrain his ability to act on his sympathies towards the crypto industry. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto investments will likely be a topic of discussion.