Fed Chairman Candidate, Kevin Warsh, stated that digital assets such as crypto are already part of the US financial system.
In a Senate hearing, he agreed that crypto should be included in the financial industry to provide more investment opportunities and protection for consumers.
According to Warsh, crypto is no longer something foreign, but rather is 'embedded' in the structure of modern financial services.
In fact, he had previously described Bitcoin as an important asset that can help policymakers understand the direction of the market.
However, Warsh's candidacy has not escaped controversy.
Democratic Senator, Elizabeth Warren, raised concerns that Warsh may become a 'puppet' of President Donald Trump.
Warren is concerned that if the Fed is influenced by the president, it can be abused for personal gain, including helping crypto companies owned by the Trump family or friends on Wall Street.
In addition, Warsh also revealed that he has investments in various crypto companies and projects such as dYdX, Solana and others.
This shows that he not only understands the crypto industry, but is directly involved in the ecosystem.
On another issue, Warsh does not support the implementation of a central bank digital currency (CBDC).
He described it as a “bad policy choice,” although he is open to limited study.
CBDCs are digital versions of official currencies controlled by central banks, but they are often criticized for the potential for overly broad transaction monitoring.
Warsh’s nomination is also still uncertain as several senators, including Thom Tillis, have refused to support him until the investigation into the Fed is concluded.
