The US Department of Justice's decision to drop its investigation into Federal Reserve Chair Jerome Powell has brought President Donald Trump's nominee, Kevin Warsh, one step closer to taking the reins. Warsh, who has significant crypto assets, had been awaiting a Senate vote after his confirmation hearing.
However, Republican Senator Thom Tillis had vowed to block the confirmation as long as the DOJ investigation into Powell's handling of a Fed building project was ongoing. The investigation's closure has now paved the way for Warsh's potential confirmation. The move is seen as a strategic play by Trump to exert greater influence over US monetary policy and install allies on the Fed board, which will have implications for the crypto industry and stablecoin issuers. Senator Elizabeth Warren has dismissed the move, calling it an attempt to install Trump's preferred candidate.
Meanwhile, Senator Tillis has expressed support for Warsh, describing him as a 'great nominee' and indicating he will vote in favor of his confirmation now that the DOJ has dropped its investigation.