Kevin Warsh, the nominee to lead the Federal Reserve, has filed a 69-page financial disclosure, revealing a complex web of investments, including stakes in over a dozen blockchain and digital asset companies. The disclosure, which was reviewed by CoinDesk, shows that Warsh holds equity positions in companies involved in DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Warsh has pledged to divest the majority of these holdings, which 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. The exact value of these holdings is unclear, as the individual line items are reported without dollar values, indicating they are worth less than $1,000 each. However, Warsh also holds over $100 million in Juggernaut Fund LP and dozens of positions in THSDFS LLC, which will require full divestiture.
The divestiture process may be complicated, particularly for illiquid venture stakes. Even after selling, 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.
The revelation of Warsh's crypto holdings has sparked interest and concern, as it raises questions about potential conflicts of interest and how they may impact his decision-making as Fed chair. Warsh's broader financial profile, including his earnings from consulting fees and speaking engagements, underscores the complexity of his financial situation.
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.