Kevin Warsh, the nominee to lead the Federal Reserve, has submitted his financial disclosure, revealing a complex web of investments, including significant holdings in cryptocurrency and blockchain companies. The disclosure, which totals 69 pages, outlines combined assets with his wife valued at over $192 million, with a notable portion allocated to crypto-specific ventures. Warsh's investment portfolio includes equity positions in more than a dozen blockchain and digital asset companies, encompassing 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 investments are primarily held through two fund structures: DCM Investments 10 LLC and a series of funds labeled AVF I, AVF II, AVF III, and AVGF I and II. Warsh's crypto and blockchain-related holdings are diverse, featuring DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific investments, and web3, NFTs, and crypto-adjacent ventures.
Notably, the size of these holdings was previously unclear, but the disclosure provides insight into the breadth of his investments. Most of the crypto positions are reported without dollar values, indicating they are small venture bets worth less than $1,000 each.
However, Warsh also holds larger, more opaque positions, including over $100 million in Juggernaut Fund LP and dozens of positions in THSDFS LLC, which will require full divestiture. The divestiture process may be complex, particularly for illiquid venture stakes. Federal ethics rules dictate a one-year cooling-off period for matters directly affecting recent financial interests, which could impact Warsh's ability to participate in certain decisions.
The revelation of Warsh's crypto investments has significant implications, as he will oversee stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions. His personal investment in the crypto ecosystem may provide a nuanced understanding of the technology, but mandatory divestiture and recusal obligations may constrain his actions. 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.