Kevin Warsh, the nominee to lead the Federal Reserve, has submitted his financial disclosure, revealing a portfolio with significant exposure to the cryptocurrency sector. The filing, which totals 69 pages, outlines combined assets of at least $192 million, with notable investments in over a dozen blockchain and digital asset companies.
These holdings encompass DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. Warsh has committed to divesting the majority of these holdings. As the future overseer of stablecoin regulation, bank crypto custody policy, and central bank digital currency decisions, Warsh's personal investments in the crypto ecosystem are of particular interest.
The disclosure details investments in fund structures, including DCM Investments 10 LLC and the AVF series of funds, which hold equity positions in various crypto and blockchain-related companies. Warsh's crypto holdings are largely concentrated in these fund vehicles, with individual line items reported without dollar values, indicating they are small venture bets.
However, larger positions, such as those in the Juggernaut Fund LP and THSDFS LLC, are valued at over $100 million and 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 next week, where Warsh's crypto holdings will likely be a topic of discussion.