Warren Presses Fed Chair Nominee Kevin Warsh on Possible Conflict, Also Flags WLFI

CoinDesk reports that Sen. Elizabeth Warren questioned Federal Reserve chair nominee Kevin Warsh over a potential conflict of interest during a Senate Banking Committee hearing, focusing on an alleged $100 million payment he received days before being sworn in. Warren pressed Warsh to identify the payer, saying his refusal to disclose the source could undermine the Fed's independence and "open the door to corruption." Warsh did not provide a direct answer, telling lawmakers he would meet disclosure requirements set by the U.S. Office of Government Ethics. Warren also broadened her scrutiny to World Liberty Financial (WLFI), a cryptocurrency venture tied to the Trump family. She said WLFI generated about $1.4 billion in revenue in 2025 and is seeking a U.S. banking license. If approved, she warned, the company could later seek expanded federal capabilities, including direct access to the Federal Reserve's payment system via a master account. The report noted Warsh has been more supportive of digital assets than former Fed Chair Jerome Powell. Warsh has said Bitcoin is an important asset policymakers should pay attention to and that cryptocurrencies have become a long-term part of the global financial system. His financial disclosures also list multiple crypto-related holdings, including exposures tied to Polychain Capital, dYdX, Dapper Labs, and assets associated with Solana and Optimism. Markets have also repriced expectations for the Fed's policy path. After entering 2026 with traders anticipating multiple rate cuts, current pricing reflects a more hawkish outlook. Markets now assign a 59% probability of a rate hike in October and a 73.4% probability of another hike in December, implying one to two hikes this year.