Kevin Warsh, nominated by President Trump to lead the Federal Reserve, has submitted his financial disclosure, revealing a complex web of investments, including those in the cryptocurrency space. His 69-page filing with the U.S. Office of Government Ethics indicates that Warsh and his wife have combined assets of at least $192 million, with a notable portion dedicated to crypto-specific holdings. These investments span various sectors, including DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Warsh has committed to selling the majority of these holdings. The disclosure provides insight into the crypto portfolio of the individual who will oversee stablecoin regulation, bank crypto custody policy, and potential central bank digital currency decisions. Warsh's crypto and blockchain-related holdings are primarily 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 identifiable crypto and blockchain positions include investments in DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific startups, and crypto investment and financial infrastructure. Additionally, Warsh has previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. Most of these crypto positions are small venture bets, with individual line items reported without dollar values, indicating they are worth less than $1,000.
However, there are larger investments, such as over $100 million in Juggernaut Fund LP, whose underlying assets are not disclosed due to confidentiality agreements. Warsh also holds dozens of positions in THSDFS LLC, some valued at $1–$5 million individually, which will require full divestiture. The sale of these positions may be complicated due to their illiquid nature. Even after divesting, Warsh will face a complex recusal landscape, with federal ethics rules requiring a one-year cooling-off period for matters directly affecting recent financial interests.
This could impact his decision-making on various issues, including stablecoin regulation and central bank digital currency decisions. The discovery of Warsh's crypto holdings has significant implications, as it suggests that the nominee has deliberately sought exposure to specific protocols, networks, and infrastructure companies that the Fed's regulatory and monetary policy decisions will directly affect. His broader financial profile, including earnings from consulting fees and speaking engagements, underscores his connections to prominent macro investors and firms with significant digital asset trading operations. The combined net worth of Warsh and his spouse, Jane Lauder, estimated to be over $2 billion, would make him one of the wealthiest Fed chairs in modern history.
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. The crypto industry views the Warsh disclosure as a double-edged signal, as a Fed chair with personal venture exposure to DeFi and blockchain infrastructure may have more nuanced views on the technology, but the mandatory divestiture and recusal obligations could constrain his ability to act on those sympathies.