The US Federal Reserve is set to welcome Kevin Warsh as its new head today, Friday, May 22, 2026. President Trump and outgoing Chair Jerome Powell did not see eye-to-eye on several matters. President Trump has repeatedly asked to further interest rate cuts, which Jerome did not comply. Warsh, on the other hand, seems more inclined towards Trump’s interests. In this article, let’s look at Kevin Warsh’s crypto stance, and if the Fed will go easy on the budding industry.
Will The Fed Go Easy On Crypto Under Kevin Warsh?
Warsh has publicly stated his support for the cryptocurrency sector. In January of 2021, in an interview with CNBC, Warsh stated that “Bitcoin is the new gold for anyone under 40.” His statement coincided with the original crypto hitting the $30,000 mark for the first time. Warsh also has investments in several cryptocurrency-related projects.
Warsh taking the helm at the Federal Reserve is seen as bullish by many pro-crypto Senators. Senator Cynthia Lummis and stated that “digital asset holders finally have a leader at the Fed who is ready to deliver it (reform).“
However, the Federal Reserve has a rule that prohibits Governors from investing in individual stocks or crypto-related assets. Warsh will have to divest his holdings before assuming office. However, given his history with cryptocurrencies, there is a high chance that the industry may flourish under his tenure at the Federal Reserve.
Also Read: Clarity Act May Never Become Law: Will The Crypto Market React?
Many expected Kevin Warsh to reduce interest rates right after assuming office. Lower rates may lead to more confidence among investors to invest in cryptocurrency assets. However, inflation data came in higher than anticipated with rising crude oil prices and high bond yields. The development may lead to rates remaining high for a longer period. However, Warsh has not commented on this matter as of yet.