Kevin Warsh cleared the Senate Banking Committee on a 13-11 party-line vote April 29, 2026, putting him one step away from becoming the next chair of the Federal Reserve. If confirmed, he would replace Jerome Powell by May 15, marking the most consequential leadership change at the central bank in years.
For crypto markets, this is a philosophical shift. Warsh has called Bitcoin the “new gold for under 40s” and disclosed investments in more than 20 crypto-linked entities.
President Trump nominated Warsh on March 4. The former Fed governor, who served during the 2008 financial crisis, built a reputation as a monetary hawk with pro-digital finance views.
During his April 21 confirmation hearing, Warsh defined digital assets as part of the US financial system, a first for any sitting or incoming Fed chair.
The committee vote split along party lines, with all Republicans voting yes and all Democrats voting no. The full Senate confirmation is expected to follow a similar partisan pattern, with the Republican majority favoring Warsh.
Warsh signals monetary discipline and controlling price pressures as top priorities, which could mean higher interest rates for longer-traditionally bad for risk assets.
His personal portfolio, with stakes in over 20 crypto-linked entities, shows a personal commitment unprecedented for a Fed chair.
Analysts point to the proposed CLARITY Act as a potential catalyst under Warsh’s leadership, which could unlock institutional capital.
Bitcoin dropped to $75,000 on the day of the committee vote but stabilized around $80,000 by May 10. Spot Bitcoin ETF outflows hit $268 million on May 7.
Some analysts project Bitcoin could reach $200,000 by end of 2026, driven by expectations of faster rate cuts under Warsh.