- Donald Trump nominated Kevin Warsh as the next Federal Reserve Chairman.
- Warsh is perceived as a supporter of Bitcoin and cryptocurrency.
- Crypto community members are referencing Warsh’s past comments about Bitcoin.
U.S. President Donald Trump has nominated Kevin Warsh as his pick to replace the outgoing Federal Reserve Chairman Jerome Powell. In a Friday announcement, Trump said the nominee will take over from Powell when the latter’s tenure expires in May 2026.
Warsh and Powell View Crypto Differently
Trump’s choice over Powell’s replacement has left crypto community members speculating over what to expect from the incoming Fed Chair, given his historical inclination toward the crypto industry. Warsh’s past pro-crypto comments about cryptocurrency, particularly Bitcoin, have resurfaced, triggering hopes of a potentially crypto-friendly era from the Fed, unlike the perceived hostility the industry has faced under the outgoing chair, Powell.
It is worth noting that throughout his tenure, Powell maintained a stringent stance on cryptocurrency, arguing that they do not have intrinsic value. Warsh, on the other hand, retains a contrary opinion and is recorded to claim that Bitcoin is “a sustainable store of value, like gold.” He is on record as having accused some Fed officials of attacking Bitcoin because it would undermine the Fed’s ability to manage the U.S. economy.
Warsh Formerly Criticized Bitcoin
Despite Warsh’s pro-crypto comments, it is worth noting that he previously attacked the technology. In 2018, he supported the argument that Bitcoin was too volatile to become a real asset. However, he publicly changed his view since then and has since stood with the digital asset.
One of Warsh’s prominent Bitcoin comments came in 2021 during a CNBC Squawk Box interview, when he stated that Bitcoin “makes sense as part of a portfolio.” Warsh also highlighted his perception of Bitcoin as a flexible entity and a product that gets a new life as an alternative currency with every passing day. Warsh said,
“When you see the strength of the Euro, the strength of the Pound, the strength of the RMB, the Korean won, the strength of the Mexican peso, I guess we shouldn’t be surprised at the strength of Bitcoin as well.”
Trump’s Friday announcement caps an extended search for Powell’s replacement, which Treasury Secretary Scott Bessent spearheaded. The search started last September with Bessent whittling down a list of half a dozen candidates before presenting four finalists to the President.
Related: Jerome Powell to Exit Fed Chair Role in 2026 as Leadership Debate Intensifies
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