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<p><strong>The U.S. Senate has confirmed Kevin Warsh as the next chair of the Federal Reserve after a narrow 54-45 vote.&nbsp;</strong></p>
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   <li>Warsh won Senate confirmation in a 54-45 vote, with John Fetterman joining Republicans.</li>
   <li>Powell’s chair term ends Friday, but he will remain a Fed governor until 2028.</li>
   <li>Warsh takes over as lawmakers prepare Thursday’s CLARITY Act markup on crypto market rules.</li>
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<p>The vote largely followed party lines, with Democratic Senator John Fetterman joining Republicans to support President Donald Trump’s nominee, <a href="https://www.reuters.com/world/us/fed-chair-nominee-warsh-set-get-us-senate-nod-inflation-intensifies-2026-05-13/" rel="noopener noreferrer nofollow">according</a> to Reuters.</p>
<p>Warsh was also approved as a Fed governor for a 14-year term. His four-year term as chair will begin as Jerome Powell’s chair term ends this week. Powell is expected to remain on the Fed board until 2028.</p>
<p>You might also like: <a href="https://crypto.news/coinbase-ceo-backs-clarity-act-before-senate-markup/" rel="noopener noreferrer nofollow"> Coinbase CEO backs CLARITY Act before Senate markup </a></p>
<h2 class="wp-block-heading" id="strong-fed-independence-concerns-remain-strong"><strong>Fed independence concerns remain</strong></h2>
<p>The vote came after Democrats raised concerns about whether Warsh would keep the central bank independent from the White House. Trump has repeatedly pushed for lower interest rates, while inflation remains above the Fed’s 2% target.</p>
<p>Warsh previously served as a Fed governor from 2006 to 2011. He also faced questions over his financial disclosures and possible conflicts tied to private investments. Crypto.news reported in April that his filings <a href="https://crypto.news/kevin-warsh-crypto-holdings-revealed/" rel="noopener noreferrer nofollow">showed</a> exposure to more than 20 blockchain and digital asset companies through venture fund structures.</p>
<p>Meanwhile, Earlier reports said Warsh’s crypto-linked holdings included indirect exposure to Solana, dYdX, Polymarket, Dapper Labs, Optimism and Lightning Network infrastructure. Crypto.news also <a href="https://crypto.news/kevin-warsh-crypto-holdings-must-be-fully-divested/" rel="noopener noreferrer nofollow">noted</a> that Warsh pledged to divest affected assets after confirmation to meet Fed ethics rules.</p>
<p>The crypto market is watching his policy stance as much as his past portfolio. Warsh has described Bitcoin as “transformative” and “an important asset that can help inform policymakers.” As previously <a href="https://crypto.news/federal-reserve-news-warsh-flags-fatal-2021-error/" rel="noopener noreferrer nofollow">reported</a>, he has called AI a major force for productivity, a view tied to his outlook on inflation and interest rates.</p>
<h2 class="wp-block-heading" id="strong-clarity-act-markup-comes-next-strong"><strong>CLARITY Act markup comes next</strong></h2>
<p>Warsh’s confirmation lands in the same week that the Senate Banking Committee is set to mark up the Digital Asset Market <a href="https://crypto.news/coinbase-ceo-backs-clarity-act-before-senate-markup/" rel="noopener noreferrer nofollow">Clarity Act</a>. The bill seeks to set clearer rules for crypto markets and divide oversight between U.S. regulators.</p>
<p>Separate coverage <a href="https://crypto.news/u-s-clarity-act-stablecoin-bill-faces-may-delay-amid-bank-pushback/" rel="noopener noreferrer nofollow">noted</a> that the CLARITY Act faced delays as lawmakers balanced Fed chair hearings with crypto legislation. Banks also pressed lawmakers over stablecoin yield, which became one of the main disputes around the bill.</p>
<p>The timing places monetary policy and crypto regulation in the same Washington spotlight. Crypto.news <a href="https://crypto.news/u-s-clarity-act-stablecoin-bill-faces-may-delay-amid-bank-pushback/" rel="noopener noreferrer nofollow">reported</a> that traders have been tracking Warsh’s confirmation, stablecoin yield talks and the CLARITY Act as linked policy events for risk assets.</p>
<p>Read more: <a href="https://crypto.news/fidelity-international-launches-moodys-rated-filq-tokenized-fund/" rel="noopener noreferrer nofollow"> Fidelity International launches Moody’s-rated FILQ tokenized fund </a></p>

Kevin Warsh confirmed as Fed chair before crypto bill test

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