On Friday, this Revelation that President Trump’s choice to replace Federal Reserve Chairman Jerome Powell in May is Kevin Warsh, who previously served as a member of the Federal Reserve Board of Governors during the Bush and Obama administrations. The choice has drawn strong attention in the crypto industry, as Warsh has made mixed statements on bitcoin, central bank digital currencies (CBDCs), stablecoins, and blockchain technology over the years.

While Warsh was supports the benefits of CBDC over stablecoinshe too is an investor in stablecoin startup Basiswhich develops a specific type of stablecoin, known as algorithmic stablecoin, similar to the one linked to the crypto crash of 2022. In addition, Warsh was involved in the early days of Bitwise Asset Managementwhich now operates publicly-traded exchange-traded funds (ETFs) for bitcoin and other crypto assets.

In terms of bitcoin specifically, Warsh made comments that ranged from neutral to positive. He once SPOKE CNBC that bitcoin is effectively gold for anyone under the age of 40. Recently, he defended bitcoin in an interview with Amazing Knowledge with Peter Robinsonsaying, “Bitcoin doesn’t bother me. I think it’s an important asset that helps inform policymakers when they’re doing things right and wrong. It’s not a substitute for the dollar. I think it’s always been a very good policeman for policy.”

I didn’t say #bitcoin a secret to us government project to give us an exit strategy for after we destroy the dollar but it makes sense if it is.

— Kyle Torpey (@kyletorpey) June 13, 2021

When you combine Warsh’s comments on bitcoin and stablecoins, it gels with the Trump administration’s crypto policies, which include the use of stablecoins to strengthen US monetary hegemony and the establishment of a national bitcoin reserve. Warsh’s comments on bitcoin acting as a way to prevent lawmakers from probing also coincide with research from Jal Toorey, who has long argued bitcoin is the ideal basis for the mathematician John Nash (yes, the one from A Beautiful Thought fame) Concept of Ideal Money.

All of this may sound generally positive for bitcoin; however, the truth is that the price of the crypto asset initially fell on the news of Warsh’s upcoming nomination. According to the report of CoinDeskthis is likely due to Warsh’s previous remarks pointing to a generally more hawkish stance on Fed policy than expected from Trump, who has often criticized Powell for not lowering interest rates. That said, it is important that the Fed chairman does not have unilateral power over central bank policy.

Although bitcoin is often recognized as a safe haven asset similar to gold, it is often relegated as a risky asset in times of economic uncertainty, as illustrated by recent tensions around Greenland. Of course, Gold itself also works like bitcoin when it comes to price volatility lately.

At the end of the day, it is still very early in terms of central bank interest in bitcoin, with Bank of France Governor François Villeroy de Galhau recently. REFLECT that he did not know bitcoin does not have a central issuer during a discussion with Coinbase CEO Brian Armstrong at The World Economic Forum. Said, the The Czech National Bank has acquired some bitcoins as part of the pilot program last year, shortly after the President of the European Central Bank Christine Lagarde said that the event would never happen.

Thesis: Fed.
Antithesis: Bitcoin.
Synthesis: The pro-Bitcoin Fed.pic.twitter.com/WKSQYlxgxP

— Balaji (@balajis) January 31, 2026

It’s hard to know what Warsh’s exact policy preferences will be once he returns to the Fed, but his nomination continues to be the talk of the environment. a potential synergistic relationship between bitcoin and the US dollar. When it comes to US debt unsustainable level and foreign central banks holding more gold than US treasuries for the first time since 1996one has to wonder if an economic adviser to Russian President Vladimir Putin is right call the United States for their alleged crypto-focused plan to maintain monetary dominance in a more digital and seemingly multi-polar world. Like that, like that the use of the Tether stablecoin USDT by the Maduro regime in Venezuela and the Central Bank of Iran shows, crypto can also be a double-edged sword for the US

Of course, there’s also the matter of the Trump family’s fortune now tied to the success of the US crypto industry to consider, with $1.4 billion in crypto revenue was enjoyed last year amid allegations of no such corruption and pay-to-play schemes. This kind of profiteering can lead to political backlash, as Senate Democrats have repeatedly done. DECLARED these conflicts of interest should be resolved by CLARITY Act.