Kevin Warsh, the nominee to lead the Federal Reserve, has filed a financial disclosure revealing a portfolio with significant crypto exposure. The 69-page document, filed with the US Office of Government Ethics, outlines combined assets of at least $192 million, including investments in over a dozen blockchain and digital asset companies. Warsh's crypto 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. The disclosure has raised questions about potential conflicts of interest, particularly given Warsh's role in overseeing stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions. The size of Warsh's crypto holdings was previously unclear, but the disclosure reveals that most of his positions are small, with each worth less than $1,000.

However, he also holds larger stakes in funds with crypto exposure, including over $100 million in Juggernaut Fund LP. Warsh will be required to divest these holdings to comply with federal ethics rules.

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. This could impact his ability to act on crypto-related matters, at least in the first year. The disclosure has also highlighted Warsh's broader financial profile, including his earnings from consulting fees and speaking engagements.

His net worth, combined with that of his spouse, would make him one of the wealthiest Fed chairs in modern history. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto holdings are likely to be a topic of discussion.