Kevin Warsh, the nominee to lead the Federal Reserve, has submitted a 69-page financial disclosure that highlights his extensive investments in the crypto and blockchain space. The filing, which was reviewed by CoinDesk, reveals that Warsh has equity positions in over a dozen companies, including those focused on DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Warsh has pledged to sell the majority of these holdings to avoid potential conflicts of interest. The disclosure document shows that 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 investments in 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 one of the spot bitcoin ETFs, though that position does not appear on the current disclosure. The majority of Warsh's crypto positions are valued at less than $1,000, but he also holds larger stakes in funds whose underlying assets are shielded by confidentiality agreements.
These holdings 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. However, others have raised concerns about potential conflicts of interest and the impact of Warsh's divestiture on the crypto market.
The Senate Banking Committee is expected to hold a confirmation hearing for Warsh next week, where his crypto holdings are likely to be a topic of discussion.