Kevin Warsh, the nominee for Federal Reserve chair, has filed his financial disclosure forms, revealing a portfolio with significant exposure to the cryptocurrency and blockchain sector. Warsh's investments include stakes in DeFi protocols, Ethereum scaling networks, and a Bitcoin Lightning startup, among others. The disclosure forms, which were reviewed by CoinDesk, show that Warsh holds equity positions in over a dozen blockchain and digital asset companies through a complex web of venture fund structures.
The total value of his combined assets with his wife is at least $192 million. Warsh has promised to divest the majority of his crypto holdings to avoid potential conflicts of interest. The divestiture process is expected to be complex, particularly for illiquid venture stakes.
The revelation of Warsh's crypto investments is likely to be a topic of discussion during his upcoming confirmation hearing, with senators potentially questioning him about his views on cryptocurrency regulation and potential conflicts of interest. The crypto industry may view Warsh's investment portfolio as a positive sign, indicating that he may have a more nuanced understanding of the technology.
However, the mandatory divestiture and recusal obligations may limit his ability to act on these views, at least in the first year of his term.