Trump Fed pick Kevin Warsh supports integrating crypto into U.S. finance, rejects a U.S. CBDC

Kevin Warsh, President Donald Trump's nominee for the Federal Reserve, told the Senate Banking Committee on Tuesday that digital assets already play a role in the U.S. financial system and should be integrated into existing infrastructure. At the same hearing, he opposed the creation of a U.S. central bank digital currency, calling it a "bad policy choice," as senators pressed him on crypto policy, Fed independence, and the risk of political influence. Sen. Cynthia Lummis questioned Warsh on whether digital assets could broaden investment access while maintaining investor protections. Warsh said crypto is already embedded in the U.S. financial landscape. "Digital assets are already part of the fabric," he said. Financial disclosures reviewed by lawmakers showed Warsh has exposure to several crypto-related firms and tokens, including dYdX, Lighter, Polychain, Dapper Labs, Solana, and Optimism. In prior comments, he also described bitcoin as an important asset for policymakers. On CBDCs, Warsh took the opposite view. In an exchange with Sen. Bernie Moreno, he rejected a U.S. CBDC on policy grounds, echoing concerns from some lawmakers about the potential for financial surveillance and expanded central bank control. The hearing also centered on the Federal Reserve's independence. Warsh said the Fed under his leadership would remain independent of the White House, though senators questioned whether political pressure could shape monetary policy decisions. Sen. Elizabeth Warren warned against Fed leadership she said could be too closely aligned with Trump, arguing it could influence how the central bank uses its authority. Warsh's nomination process is unfolding as Trump continues to criticize current Fed Chair Jerome Powell over interest-rate policy. A Department of Justice probe involving Powell has added another layer of scrutiny. Sen. Thom Tillis said he would hold off on supporting the nomination until the investigation is resolved, while signaling a generally favorable view of Warsh. Sen. Ruben Gallego also pressed Warsh on reports of discussions around rate cuts. Warsh denied making any commitments and said no demands were made. The committee hearing underscored how crypto policy debates are intersecting with broader concerns about central bank governance and political interference.