Kevin Warsh, the nominee for Federal Reserve chair, has submitted his financial disclosure, unveiling a complex web of investments in the cryptocurrency space. The 69-page document, filed with the U.S.
Office of Government Ethics, reveals that Warsh and his wife have combined assets worth at least $192 million, with a significant portion tied to the crypto industry. Warsh's investment portfolio includes stakes in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Notably, he has pledged to divest most of these holdings. The disclosure has sparked interest and concern, given Warsh's potential role in regulating stablecoins, overseeing bank crypto custody policies, and influencing central bank digital currency decisions. Warsh's crypto holdings 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. His investments include positions in DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific startups, and crypto investment and financial infrastructure companies.
Warsh has also invested in Web3, NFTs, and crypto-adjacent companies. The majority of these positions are valued at less than $1,000, but some larger investments, such as his stake in Juggernaut Fund LP, are worth over $100 million. Warsh's divestiture of these holdings will be closely watched, particularly given the potential for conflicts of interest.
As the Fed weighs in on key regulatory decisions, 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 disclosure has significant implications for the crypto industry, with some viewing Warsh's personal venture exposure to DeFi and blockchain infrastructure as a potential positive, while others see the mandatory divestiture and recusal obligations as a constraint on his ability to act on these interests.