Incoming Fed Chair's Crypto Holdings Revealed

Kevin Warsh, the nominee for the Federal Reserve chair, has submitted his financial disclosure, which indicates that he and his wife have combined assets of at least $192 million. Notably, the filing reveals that Warsh has invested in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure. He has pledged to sell most of these holdings. Warsh's crypto-specific investments are primarily held through venture fund structures, including DCM Investments 10 LLC and a series of funds labeled AVF I, AVF II, AVF III, and AVGF I and II. The disclosure also shows that Warsh has previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. The majority of Warsh's crypto positions are reported as being worth less than $1,000, indicating they are small venture bets rather than concentrated positions. However, he also holds larger, opaque positions in funds such as Juggernaut Fund LP and THSDFS LLC, which will require full divestiture. The mandatory divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies towards the crypto industry, at least in the first year. The disclosure has sparked interest in the crypto community, as it may indicate that Warsh has a more nuanced view of the technology than his predecessors.