Kevin Warsh is just one vote away from taking the helm of the U.S. central bank.
On Tuesday, the Senate confirmed Warsh to the Federal Reserve’s Board of Governors in a narrow 51-45 vote along party lines. Pennsylvania Democrat John Fetterman was the only crossover.
A separate vote to confirm Warsh as the next Federal Reserve Chair is expected as early as Wednesday.
He is now highly likely to succeed Jerome Powell, whose term as chair expires this Friday.
The path to confirmation was unblocked last month when Senator Thom Tillis (R., N.C.) agreed to support the nomination. The latter had previously hesitated to support the nomination due to the Justice Department’s criminal investigation into Powell. However, U.S. Attorney Jeanine Pirro then dropped the criminal probe.
A seismic change
Powell was not particularly friendly toward crypto, but Warsh is bullish on the mercurial sector.
During his recent confirmation hearings, Warsh explicitly stated that digital assets are already “part of the fabric of our financial services industry.”
Warsh does not view Bitcoin as a purely speculative gamble. He has famously referred to BTC as the “new gold for under 40s.” He believes that the leading cryptocurrency is actually a legitimate macro asset.
Financial disclosures revealed that he holds stakes in over 20 crypto-linked entities.
Despite his pro-innovation stance, Warsh’s nomination was considered to be the reason behind Bitcoin’s crash in early 2026 due to his hawkishness.
However, he has recently expressed a desire to lower interest rates.
Earlier this year, billionaire investor Ray Dalio took to X to voice his approval.
“Kevin Warsh was a great choice,” Dalio stated. “He is knowledgeable and a reasonable man who understands the risks of having a Fed policy that is too easy as well as too tight… Presumably, he also knows how to deal with the president and the Treasury well.”
