Kevin Warsh, the nominee to lead the Federal Reserve, has filed a comprehensive financial disclosure, unveiling a complex web of assets, including significant stakes in over a dozen blockchain and digital asset companies. The filing, which totals 69 pages, outlines combined assets with his wife valued at a minimum of $192 million. Notably, Warsh's investments span a wide range of crypto-specific areas, such as DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
However, he has committed to divesting the majority of these holdings. The disclosure has sparked interest and concern, particularly given Warsh's future role in overseeing stablecoin regulation, bank crypto custody policy, and potential central bank digital currency decisions. Warsh's crypto and blockchain-related holdings are primarily 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. The specific crypto positions include investments in DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, crypto investment and financial infrastructure, as well as Web3, NFTs, and crypto-adjacent entities.
The majority of these positions are reported without dollar values, indicating they are small venture bets worth less than $1,000 each. Nevertheless, Warsh holds substantial assets in Juggernaut Fund LP and THSDFS LLC, which will require full divestiture.
The mandatory divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies towards the crypto industry, at least during his first year in office. The disclosure has significant implications for the crypto industry, as it may influence the Fed's regulatory and monetary policy decisions.
Warsh's broader financial profile, including his consulting fees and speaking engagements, underscores his connections to prominent macro investors and firms with significant digital asset trading operations. The Senate Banking Committee is expected to hold a confirmation hearing next week, where Warsh's crypto holdings will likely be a topic of discussion.