Incoming Fed Chair's Crypto Holdings Revealed, Promises to Sell

Kevin Warsh, the nominee for the Federal Reserve chair, has filed his financial disclosure, revealing a complex web of investments in the crypto industry, including DeFi protocols, Ethereum scaling networks, and Bitcoin-related startups. The filing, which is required by the U.S. Office of Government Ethics, shows that Warsh holds stakes in over a dozen blockchain and digital asset companies through various venture fund structures. Warsh has promised to sell the majority of these holdings to avoid potential conflicts of interest. The revelation has sparked interest in the crypto community, as Warsh will oversee key decisions on stablecoin regulation, bank crypto custody policy, and central bank digital currency. The size of Warsh's crypto holdings was previously unclear, but the disclosure reveals that most of his positions are small, with each being worth less than $1,000. However, he also holds larger stakes in funds with crypto exposure, which 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 crypto holdings will likely be a topic of discussion during Warsh's confirmation hearing, which is expected to take place next week.