Kevin Warsh, the nominee for Federal Reserve chair, has submitted his financial disclosure, revealing a complex portfolio that includes investments in cryptocurrency and blockchain companies. The disclosure, which is required by the US Office of Government Ethics, shows that Warsh has equity positions in over a dozen blockchain and digital asset companies, including those involved in DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure.
Warsh has pledged to divest the majority of these holdings. The investments 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.
Warsh's crypto and blockchain-related holdings include stakes in DeFi protocols, Ethereum scaling networks, a Bitcoin Lightning startup, and prediction markets. The size of these holdings is not entirely clear, as many of the individual line items are reported without dollar values, indicating they are worth less than $1,000. However, Warsh holds over $100 million in Juggernaut Fund LP, whose underlying assets are shielded by confidentiality agreements, and dozens of positions in THSDFS LLC, some valued at $1–$5 million individually.
These 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 in the first year.
The disclosure has sparked interest and concern, as Warsh will oversee stablecoin regulation, bank crypto custody policy, and any future central bank digital currency decisions. 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.