President Trump's nominee for the Federal Reserve chair, Kevin Warsh, has filed his financial disclosure, revealing a complex web of investments, including those in cryptocurrency and blockchain companies. The 69-page document, filed with the U.S.
Office of Government Ethics, shows that Warsh and his wife have combined assets of at least $192 million, with a significant portion of these holdings in crypto-specific companies. Warsh's investments span various sectors, including DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. Notably, he has invested in companies such as Compound, dYdX, and Polychain, and has also held positions in funds like Juggernaut Fund LP and THSDFS LLC. However, due to potential conflicts of interest, Warsh has promised to sell the majority of these holdings.
The divestiture process is expected to be complex, particularly for illiquid venture stakes. Warsh's financial profile also reveals that he has earned significant consulting fees from prominent investment firms, including Duquesne Family Office and GoldenTree Asset Management, which have substantial digital asset trading operations.
His speaking fees from various firms, including TPG and Warburg Pincus, have also been substantial. The Senate Banking Committee is set to hold a confirmation hearing for Warsh's nomination next week, where his crypto holdings are likely to be a topic of discussion. The crypto industry views Warsh's disclosure as a mixed signal, as his personal venture exposure to DeFi and blockchain infrastructure may indicate a more nuanced understanding of the technology, but the mandatory divestiture and recusal obligations may limit his ability to act on these sympathies.