Trump Weighs Crypto-Linked Nominees for Key Fed Roles Amid Leadership Shift

A prominent U.S. investor with ties to the cryptocurrency sector is reportedly being considered for a pivotal role at the Federal Reserve, according to recent media reports. The development comes as U.S. President Donald Trump seeks to fill the vacancy left by the resignation of Federal Reserve Board of Governors member Adriana Kugler, which takes effect on Friday. Trump is said to be evaluating four potential nominees, including Kevin Hassett, a top economic adviser who disclosed a stake in Coinbase Global worth between $1 million and $5 million, and Kevin Warsh, a former Fed governor who has previously expressed views on how blockchain technology could enhance central banking operations [1].

The individual Trump selects for this position will play a key role in shaping U.S. monetary policy, including decisions on federal interest rates. Hassett, who also serves as director of the National Economic Council, and Warsh, both bring extensive experience in economic and regulatory affairs, though their views on digital assets differ. Warsh, for instance, has previously commented that the Fed must remain vigilant in preserving its monopoly over money as cryptocurrencies evolve toward more stable forms [1].

Alongside the Kugler vacancy, another high-profile post at the Fed is also under consideration. Federal Reserve Governor Christopher Waller is increasingly seen as a leading candidate to become the next Fed chair, though he has not yet met with Trump and the White House has emphasized that any personnel decisions remain speculative [1]. Other potential candidates include Hassett and Warsh, both of whom have engaged in discussions with the administration. Waller has been praised for his expertise in inflation forecasting and policy strategy, with Stephen Miran, chair of the White House Council of Economic Advisers, highlighting his strengths in these areas [1].

The broader reshaping of the Fed’s leadership is occurring alongside other significant financial policy moves by the Trump administration. Most notably, Trump is expected to sign an executive order allowing 401(k) retirement plans to include alternative assets such as cryptocurrency and private equity. This move aligns with the administration’s broader agenda to promote financial deregulation and expand investment options for Americans [1].

Kugler’s departure marks the first major opening on the Fed board in the current term, and Trump has indicated plans to appoint a temporary replacement before a permanent nominee is confirmed by the Senate. The Fed chair position, meanwhile, will remain open until May 2026, when current chair Jerome Powell’s term concludes. The Trump administration has not officially announced any final decisions but has stressed its commitment to selecting qualified individuals who align with its economic priorities [1].

Sources:

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

[1] Cointelegraph: Crypto investor under consideration to fill crucial US Fed seat: Report (https://cointelegraph.com/news/fed-seat-picks-donald-trump-crypto?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)