Trump Weighs Crypto-Linked Nominee for Vacant Fed Seat

A prominent cryptocurrency investor is reportedly under consideration to fill a key vacancy on the U.S. Federal Reserve Board of Governors, according to recent reports. The nomination would come as Adriana Kugler’s resignation becomes effective this Friday, creating an opportunity for a reshaping of the Fed’s leadership [1]. U.S. President Donald Trump is said to be weighing several candidates, including economic adviser Kevin Hassett and former Fed governor Kevin Warsh, both of whom have notable connections to the cryptocurrency space [1].

Hassett, who also serves as the director of the National Economic Council, has disclosed holding a stake in Coinbase Global valued between $1 million and $5 million as of June 2024 [1]. Warsh, who served as a Fed governor from 2006 to 2011, has previously expressed views on the potential role of blockchain technology in the U.S. central bank’s payment systems [1]. In 2018, Warsh remarked that if next-generation cryptocurrencies became less volatile and more like traditional money, the Fed would need to defend its monopoly over money to avoid losing relevance [1].

The potential nomination highlights a growing openness within the Trump administration to integrating digital assets into broader economic policymaking. This aligns with a broader White House initiative calling for a reevaluation of digital asset regulations, emphasizing the need for a cohesive and forward-looking framework [2]. The administration’s interest in reshaping the Fed has also drawn attention to Christopher Waller, a current Fed Governor, who is reportedly emerging as a leading contender for the position of Fed Chair [3]. Waller, known for his moderate approach to monetary policy, has already influenced financial markets with his reported favorability [3].

Trump has previously faced legal and procedural hurdles in reshaping the Fed, particularly in attempts to remove current Fed Chair Jerome Powell. Although a recent Supreme Court decision expanded presidential authority over certain federal agencies, it remains unclear whether the president can act on Powell without cause [4]. Trump has, however, continued to publicly challenge the Fed’s independence in setting monetary policy, signaling a preference for leadership that aligns with his economic agenda [1].

On CNBC’s Squawk Box, Trump hinted that he might announce a new Fed Chair by the end of the week, potentially signaling a shift toward more accommodative monetary policy [5]. In parallel, the administration has also nominated Stephen Miran, the Council of Economic Advisers chairman, for a role as a Federal Reserve Governor, further underscoring its intent to influence the central bank’s direction [6].

The potential nomination of a crypto investor to the Fed could have wide-ranging implications for the regulation and perception of digital assets in the U.S. economic landscape. If confirmed, the nominee would play a key role in shaping monetary policy, including the setting of federal interest rates, and could influence how the Fed interacts with the rapidly evolving crypto market.

Source:

[1] Crypto investor under consideration to fill crucial US Fed seat: Report - Cointelegraph (https://cointelegraph.com/news/fed-seat-picks-donald-trump-crypto)

[2] Key Takeaways from the White House Crypto Report - Morrison (https://www.mofo.com/resources/insights/250806-key-takeaways-from-the-white-house-crypto-report)

[3] Waller Emerges as Favorite for Fed Chair Among Trump Team - Yahoo (https://finance.yahoo.com/news/waller-emerges-favorite-fed-chair-140834513.html)

[4] The Reasons Why Jerome Powell Will Complete His Term - Funds (https://www.fundssociety.com/en/news/markets/the-reasons-why-jerome-powell-will-complete-his-term-at-the-head-of-the-fed/)

[5] President Trump to announce new Fed Chair by end - FS (https://fsinsight.com/macro-strategy/first-word/2025/08/06/president-trump-to-announce-new-fed-chair-by-end-of-week-likely-view-as-dov/)

[6] Trump to nominate Stephen Miran for Federal Reserve - Investing.com (https://ng.investing.com/news/stock-market-news/trump-to-nominate-stephen-miran-for-federal-reserve-governor-role--bloomberg-2051178)