Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure, revealing a complex web of investments, including those in the crypto space. His portfolio, combined with that of his wife, totals at least $192 million, with a significant portion dedicated to crypto and blockchain companies.
Warsh has invested in over a dozen companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. However, he has vowed to divest most of these holdings. The disclosure has sparked interest, given Warsh's impending role in overseeing stablecoin regulation, crypto custody policy, and potential central bank digital currency decisions.
His investments are primarily held through two fund structures: DCM Investments 10 LLC and a series of funds labeled AVF. The holdings include stakes in DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, and crypto investment and financial infrastructure.
Warsh has also invested in Web3, NFTs, and crypto-adjacent companies. While the size of these holdings is largely unclear, the majority are reportedly small venture bets, with a few larger investments valued between $1-5 million. Warsh will be required to divest these holdings to comply with federal ethics rules, which may prove challenging for illiquid venture stakes. The divestiture process and potential conflicts of interest may impact Warsh's ability to make decisions on crypto-related matters during his tenure as Fed chair.