Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure, showing combined assets with his wife valued at over $192 million. Notably, the filing reveals that Warsh has investments in numerous crypto and blockchain companies, including those involved in DeFi lending, decentralized derivatives, and Bitcoin payments infrastructure. Warsh has stated that he will divest most of these holdings.
The disclosure provides insight into Warsh's personal investments in the crypto ecosystem, which could impact his decision-making as the head of the Federal Reserve, particularly regarding stablecoin regulation and central bank digital currency decisions. Warsh's crypto holdings 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.
His investments include stakes in DeFi protocols, Ethereum scaling networks, a Bitcoin Lightning startup, and prediction markets. While most of these positions are valued at less than $1,000, Warsh also holds larger, more opaque positions in funds such as 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 in the first year.
The Senate Banking Committee is expected to hold a confirmation hearing for Warsh next week, where his crypto holdings are likely to be a topic of discussion.