Kevin Warsh, the nominee for the Federal Reserve chair position, has filed a comprehensive financial disclosure form, revealing a diverse portfolio that includes significant stakes in cryptocurrency and blockchain companies. The filing, which is a requirement for his confirmation, outlines his assets and those of his wife, totaling at least $192 million. Notably, Warsh's portfolio includes investments 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.
He has pledged to divest the majority of these holdings. The disclosure provides insight into Warsh's personal investments, which could influence his oversight of stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions.
Warsh's crypto and blockchain-related 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 include 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 businesses. Warsh previously invested in Bitwise Asset Management, the firm behind one of the spot bitcoin ETFs, although this position does not appear on the current disclosure. The majority of these crypto positions are small venture bets, with individual line items reported without dollar values, indicating they are worth less than $1,000.
However, Warsh also holds larger stakes in funds with underlying assets shielded by confidentiality agreements, which will require full divestiture. The sale of these positions could be complex, particularly for illiquid venture stakes. Even after divesting, 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 participate in decisions related to the crypto industry.
Warsh's broader financial profile highlights his connections to prominent investors and firms with significant digital asset trading operations. 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 for Warsh, where his crypto holdings are likely to be a topic of discussion. The crypto industry may view Warsh's disclosure as a double-edged signal, as his personal venture exposure to DeFi and blockchain infrastructure may indicate more nuanced views on the technology, but the mandatory divestiture and recusal obligations could constrain his ability to act on these sympathies.