Fed chairman nominee Kevin Warsh's vast holdings include crypto

Kevin Warsh, President Trump's nominee for Federal Reserve chair, has disclosed substantial crypto holdings through various venture funds, including stakes in DeFi protocols, Ethereum scaling networks, a Bitcoin Lightning startup, and prediction markets. These investments, spanning over a dozen blockchain and digital asset companies, are concentrated in fund structures like DCM Investments 10 LLC and AVF series funds. While most individual holdings within these funds are valued under $1,000, larger, opaque positions in Juggernaut Fund LP and THSDFS LLC, potentially containing significant crypto exposure, will require full divestiture. Warsh has pledged to sell the majority of these crypto-related assets to comply with ethics regulations. The disclosure raises questions about potential conflicts of interest as the Fed considers regulations on stablecoins, bank crypto custody, and central bank digital currencies, as Warsh's investments directly intersect with these policy areas. Despite the divestiture, federal ethics rules may necessitate a one-year cooling-off period for matters directly affecting his recent financial interests. The existence of these deliberate crypto investments, rather than passive holdings, suggests a nominee with potentially nuanced views on digital assets, though his ability to act on them may be constrained by recusal obligations.

(Source：CoinDesk)