Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure form, revealing a vast portfolio with combined assets worth at least $192 million. Notably, his investments include stakes 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 promised to divest most of these holdings. The disclosure form, reviewed by CoinDesk, outlines his crypto and blockchain-related holdings, 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 crypto positions include DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific investments, and crypto investment and financial infrastructure. Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF.
Most of his crypto positions are small venture bets, but some larger holdings, such as his stake in Juggernaut Fund LP, are worth over $100 million. Warsh will need to divest these holdings to comply with the Ethics in Government Act. The divestiture process may be complex, particularly for illiquid venture stakes. Even after selling, Warsh will face a complicated recusal landscape, with a one-year cooling-off period for matters directly affecting his recent financial interests.
The Fed's regulatory and monetary policy decisions will likely be influenced by Warsh's experience and knowledge of the crypto industry. His broader financial profile shows that he has earned significant consulting fees from prominent investment firms and has a strong network in the financial sector. Warsh's nomination will be reviewed by the Senate Banking Committee, and his crypto holdings are likely to be a topic of discussion during the confirmation hearing.