Kevin Warsh, the nominee to chair the Federal Reserve, has filed a 69-page financial disclosure revealing a portfolio with significant exposure to the cryptocurrency and blockchain space. The filing, which was reviewed by CoinDesk, shows that Warsh holds equity positions in over a dozen companies involved in DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. His 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 has pledged to divest the majority of these holdings, which could pose a challenge due to the illiquid nature of some of the venture stakes.
The disclosure has sparked questions about potential conflicts of interest and how Warsh's personal investments may influence his decisions as Fed chair, particularly with regard to stablecoin regulation, bank crypto custody policy, and central bank digital currency decisions. 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.