Kevin Warsh, the nominee for Federal Reserve Chair, has filed a 69-page financial disclosure, showing combined assets with his wife of at least $192 million. Notably, his portfolio includes investments in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Warsh has stated that he will sell the majority of these holdings. The disclosure reveals 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.
His investments include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, and crypto investment and financial infrastructure. Warsh previously invested in Bitwise Asset Management, the firm behind one of the spot bitcoin ETFs. Most of his crypto positions are small venture bets, but some larger investments will require full divestiture. The divestiture process may be complex, particularly for illiquid 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 size of Warsh's crypto bets is less significant than the fact that they exist, demonstrating his deliberate attempt to gain exposure to specific protocols, networks, and infrastructure companies affected by the Fed's regulatory and monetary policy decisions. Warsh's broader financial profile includes earnings from consulting fees and speaking engagements with prominent investment firms, highlighting his connections to the financial industry. His confirmation hearing is expected to take place next week, where his crypto holdings will likely be a topic of discussion.
The crypto industry views Warsh's disclosure as a double-edged signal, potentially indicating more nuanced views on the technology, but also mandatory divestiture and recusal obligations that may constrain his ability to act on these views.