Kevin Warsh, the nominee for Federal Reserve chair, has submitted his financial disclosure, which details his and his wife's combined assets of at least $192 million. Notably, the filing reveals Warsh's investments in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure.
Although the size of these holdings was previously unclear, it has been disclosed that Warsh holds equity positions in these companies through various venture fund structures, including DCM Investments 10 LLC and funds labeled AVF I, AVF II, AVF III, and AVGF I and II. The disclosed crypto and blockchain-related holdings include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific investments, and positions in crypto investment and financial infrastructure, as well as Web3, NFTs, and crypto-adjacent companies.
Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. The majority of Warsh's crypto positions are reported as being worth less than $1,000, indicating they are small venture bets.
However, larger investments in Juggernaut Fund LP and THSDFS LLC will require full divestiture due to confidentiality agreements shielding the underlying assets. Warsh's financial profile also shows he earned significant consulting fees from notable investors and firms with digital asset trading operations. As the Fed weighs in on regulatory and monetary policy decisions affecting the crypto industry, Warsh's deliberate exposure to specific protocols, networks, and infrastructure companies raises questions about potential conflicts of interest.
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.