Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to be the next Fed chair, a move crypto advocates praise for Warsh’s track record on digital assets. A Wall Street Journal article titled “Will Warsh Be a Pro-Bitcoin Fed Chair?” highlighted that cryptocurrency supporters view Warsh’s Bitcoin-friendly remarks as a positive signal for a pro-Bitcoin stance at the central bank. Michael Saylor, the chairman of MicroStrategy and a prominent Bitcoin advocate, was quoted as saying Warsh could be “the first pro-Bitcoin Fed chair.”
Warsh’s background includes roles at Morgan Stanley and in the White House National Economic Council, as well as being the youngest Fed governor in history. If confirmed, he would succeed Jerome Powell as Fed chair in May. In public statements, Warsh has indicated that Bitcoin is not a currency substitute but can serve as a useful gauge for policy decisions, and he has described Bitcoin as an important asset that can help determine whether policymakers are pursuing sound policies. He has also praised the blockchain technology as the most exciting and cool software, noting it can be used in neutral ways for both good and ill.
Warsh’s prior involvement with the cryptocurrency startup Basis was noted; Basis had described itself as developing a cryptocurrency with an algorithmic central bank, but the project halted in December 2018 due to regulatory challenges. Following Warsh’s nomination, Bitcoin rose to around the high 83,000s, briefly touching 84,000, and later traded around 83,000, up roughly 2% from the prior day. Markets also showed mixed reactions; the New York Stock Exchange declined on the nomination day amid ongoing macroeconomic uncertainty and regulatory debates, including delays to the CLARITY Act and frictions between Coinbase and banks, and The Washington Post noted that Warsh faces one of the most challenging roles in government, balancing independence with political pressure to steer monetary policy.
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