Senate Confirms Bitcoin Friendly Kevin Warsh as Fed Chair Ahead of Clear Legislation Vote
The Senate on Wednesday confirmed Kevin Warsh as the next chairman of the Federal Reserve in the most divisive confirmation vote in the central bank’s history, handing President Donald Trump a historic win as fresh inflation data blocked the path to the interest rate cuts he so desperately wants.
The chamber voted 54-45 to confirm Warsh, 56, making him the 11th Fed chairman of the modern banking era and the richest person ever to hold the position. The vote was entirely along party lines, with only Pennsylvania Democratic Senator John Fetterman jumping in support.
Warsh takes over from Jerome Powell, whose four-year term as chairman ends on Friday – although Powell is not leaving the Fed entirely, as he has retained his seat as the board’s governor until 2028.
Warsh is no stranger to the marble tunnels of the Fed. He previously served on the Board of Governors from 2006 to 2011, becoming the youngest member in the institution’s history at the age of 35.
His return comes at a very tumultuous time: The Fed is dealing with inflation persistently above its 2% target, economic fallout from the Iran war, and the impending Supreme Court decision on the fate of Governor Lisa Cook.
Trump did not hide his expectations. The president has repeatedly clashed with Powell over what he sees as overly risk-taking monetary policy, and Warsh was chosen from a field of nearly a dozen people — including current governors Christopher Waller and Michelle Bowman — who think about easing rates.
But this week’s news has complicated the picture, as pipeline price pressures are rising at their fastest pace in more than three years, prompting markets to back off bets on a cut and price hike on the chance later this year. Warsh’s first FOMC meeting as chairman is scheduled for June 16–17.
Warsh: Bitcoin doesn’t bother me
For the Bitcoin community, Warsh’s confirmation carries one weight. He is the first incoming Fed chairman to gain direct exposure to digital assets, including a stake in Flashnet, a Bitcoin payment startup, and stakes in crypto index manager Bitwise and stablecoin project Basis.
He has publicly described Bitcoin as a “valuable asset” and “a very good police officer of policy,” arguing that its value reflects real-world confidence in the Fed’s monetary policy. “Bitcoin doesn’t worry me,” Warsh said at a Hoover Institution event last year, casting it as a sign of financial credibility rather than a threat to the dollar.
Lawmakers are scheduled to vote tomorrow on the Clarity Act, a closely watched law that could overhaul the regulatory framework for bitcoin and digital assets in the United States.
Rep. French Hill (R-AR) praised the confirmation, saying “Warsh’s commitment to disciplined fiscal policy will help restore confidence in our economy”.
Critics, including Sen. Elizabeth Warren, spent his April 21 confirmation hearing warning that political pressure from the White House could jeopardize the Fed’s independence – concerns Warsh dismissed outright, vowing to keep monetary policy “strictly independent”.
Powell, for his part, said he plans to “keep a low profile as governor.”
