Kevin Warsh, the nominee for Federal Reserve chair, has filed a 69-page financial disclosure that reveals a substantial portfolio with combined assets valued at over $192 million, including investments in more than a dozen blockchain and digital asset companies. The disclosure, which was reviewed by CoinDesk, shows 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.
His investments span DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. Warsh has promised to divest the majority of these holdings, which could have implications for his ability to oversee stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions. The divestiture process may be complex, given the illiquid nature of some of the venture stakes. Even after selling, Warsh will face a complicated recusal landscape, with federal ethics rules requiring a one-year cooling-off period for matters directly affecting recent financial interests.
The discovery of Warsh's crypto portfolio has sparked mixed reactions, with some viewing it as a positive sign that the incoming Fed chair may have a more nuanced understanding of the technology, while others are concerned about potential conflicts of interest.