Kevin Warsh, the nominee for the Federal Reserve chair, has filed a 69-page financial disclosure revealing a combined asset value of at least $192 million with his wife. Notably, the document shows Warsh has invested in over a dozen blockchain and digital asset companies, spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, and Bitcoin payments infrastructure. He has promised to divest most of these holdings.
Warsh's crypto-specific investments are primarily held through 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 portfolio includes positions in DeFi and trading protocols, Layer 1 and Layer 2 networks, Bitcoin-specific companies, and crypto investment and financial infrastructure.
Warsh previously invested in Bitwise Asset Management, the firm behind a spot bitcoin ETF. Most of his crypto positions are small, with individual line items reported without dollar values, indicating they are worth less than $1,000.
However, he holds over $100 million in Juggernaut Fund LP and dozens of positions in THSDFS LLC, which will require full divestiture. The mandatory divestiture and recusal obligations may constrain Warsh's ability to act on his sympathies towards the crypto industry. The disclosure has sparked interest in the crypto community, with some viewing it as a positive sign that the incoming Fed chair has a nuanced understanding of the technology, while others are concerned about potential conflicts of interest.