With Federal Reserve Governor Adriana Kugler set to step down this week, former U.S. President Donald Trump is reportedly considering several candidates to fill the key central bank position—one of whom has substantial ties to the crypto industry.
According to a Reuters report published Thursday, Trump is weighing four potential nominees, including Kevin Hassett, a former top economic adviser, and Kevin Warsh, a former Fed governor. Kugler’s resignation, effective Friday, opens up a critical seat on the Board of Governors at a time when U.S. monetary policy remains under intense public and political scrutiny.
What’s at stake?
The incoming nominee will help shape the Fed’s approach to interest rates, inflation control, and financial stability—decisions that ripple across global markets, including the rapidly evolving crypto sector.
Kevin Hassett, who served as Chair of the Council of Economic Advisers and director of the National Economic Council under Trump, disclosed holding between $1 million and $5 million in Coinbase shares as of June. This financial interest ties him closely to the crypto industry, which has been looking for more favorable treatment from regulators.
Kevin Warsh, another contender, has also voiced interest in blockchain technology's potential for upgrading the Fed’s payment systems. Back in 2018, Warsh argued that the Fed’s monopoly on currency should evolve with technological innovation. He suggested that if crypto assets become stable and functional enough to act as true units of account, the central bank should consider them seriously—not dismiss them.
“If the next generation of cryptocurrencies look more like money and less like gold... I wouldn’t want somebody to take that monopoly from me,” Warsh said, as quoted by The New York Times.
Trump vs. the Fed
Trump’s track record with the Federal Reserve has been contentious. During his presidency, he frequently criticized Fed Chair Jerome Powell, whom he himself nominated, for not cutting interest rates fast enough. While Trump reportedly lacks the authority to remove Powell without cause, a recent Supreme Court ruling in April expanded presidential powers over federal agencies, potentially shifting that dynamic.
A strategic moment for digital assets
The nomination comes at a pivotal time for both traditional monetary policy and the digital asset industry. If Trump selects a crypto-aligned candidate and wins confirmation in the Senate, it could tilt the Fed’s stance toward a more innovation-friendly posture, particularly around blockchain integration or digital currency infrastructure.
