Kevin Warsh, the nominee to chair the Federal Reserve, has filed his financial disclosure, revealing a complex web of investments, including stakes in crypto and blockchain companies. The disclosure, which is required by the US Office of Government Ethics, shows that Warsh holds equity positions in over a dozen blockchain and digital asset companies, including DeFi lending protocols, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure.
Warsh has pledged to divest the majority of these holdings, which 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. The disclosure also reveals that Warsh previously invested in Bitwise Asset Management, the firm behind one of the spot bitcoin ETFs.
The majority of Warsh's crypto positions are small, with individual line items reported without dollar values, indicating they are worth less than $1,000. However, he also holds larger positions in Juggernaut Fund LP and 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, at least in the first year. The disclosure has raised questions about potential conflicts of interest, and the crypto holdings are likely to be a topic of discussion during Warsh's confirmation hearing.
The hearing is expected to be held next week, although the timing is uncertain due to a criminal investigation into current Fed Chair Jerome Powell.