The Trump administration has moved closer to exerting greater control over the US financial system after the Department of Justice dropped its investigation into Federal Reserve Chair Jerome Powell. This development could pave the way for the confirmation of Kevin Warsh, Trump's nominee to replace Powell, who has been awaiting a Senate vote. Warsh, a wealthy individual with investments in the crypto sector, appeared before a confirmation hearing and is now more likely to secure the position after the DOJ's decision to pass the investigation to the Fed's inspector general.
The move has been met with skepticism by Senator Elizabeth Warren, who views it as an attempt to install a Trump ally at the helm of the Fed. With the DOJ's investigation no longer a hurdle, the Republican-majority Senate may now proceed with Warsh's confirmation, potentially granting Trump greater influence over US monetary policy and the regulation of the crypto industry.