Incoming Fed Chair's Crypto Investments Revealed

Kevin Warsh, the nominee for the Federal Reserve chair, has filed his financial disclosure, revealing a diverse portfolio with significant crypto holdings. The 69-page document, filed with the US Office of Government Ethics, shows combined assets with his wife valued at over $192 million. Notably, Warsh has investments in more than a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. He has promised to divest most of these holdings. The disclosure provides insight into Warsh's personal investments, which could impact his regulatory decisions as Fed chair, particularly regarding stablecoin regulation, bank crypto custody policy, and central bank digital currency decisions. Warsh's crypto holdings 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. His investments include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, crypto investment and financial infrastructure, as well as Web3, NFTs, and crypto-adjacent companies. Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. Most of his crypto positions are small venture bets, but some larger holdings, such as his stake in Juggernaut Fund LP, 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, with some viewing it as a positive sign that the incoming Fed chair has a nuanced understanding of the technology, while others are concerned about potential conflicts of interest. As Warsh's confirmation hearing approaches, the crypto holdings are likely to be a topic of discussion, with senators on both sides focused on financial conflicts at the Fed.