Incoming Fed Chair's Crypto Investments Revealed: What You Need to Know

Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure form, revealing a complex web of investments, including those in the crypto space. The filing shows that Warsh, through various venture fund structures, holds equity positions in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure. Warsh has pledged to divest the majority of these holdings. The disclosure provides insight into the crypto-specific holdings of the man who will oversee stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions. Warsh's crypto and blockchain-related 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. 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 one of the spot bitcoin ETFs. Most of the crypto positions are small venture bets, but there are larger holdings, such as over $100 million in Juggernaut Fund LP, whose underlying assets are shielded by confidentiality agreements. Warsh will be required to divest these holdings, which could be challenging, particularly for illiquid venture stakes. The divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies for the crypto industry, at least in the first year. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto holdings are likely to be a topic of discussion.