Incoming Fed Chair's Portfolio Reveals Crypto Holdings, Prompting Promised Sell-Off

Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure, revealing a web of investments in the crypto space. His portfolio includes equity positions in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure. Warsh has promised to sell off the majority of these holdings. The disclosure reveals combined assets with his wife of at least $192 million, with the crypto-specific holdings being of particular interest to the industry. Warsh's investments are concentrated in two fund structures: DCM Investments 10 LLC and a series of funds labeled AVF I, AVF II, AVF III, and AVGF I and II. The holdings include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific investments, and crypto investment and financial infrastructure. Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. The majority of these crypto positions are small venture bets, but there are larger pots with crypto exposure that will require full divestiture. The mandatory divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies towards the crypto industry. The disclosure has sparked questions about potential conflicts of interest and how Warsh's divestiture will play out for illiquid venture stakes. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto holdings will likely be a topic of discussion.