The Crypto Fed? A New Player in Trump’s Search for Federal Reserve Chair

Kevin Hassett, a former advisor at Coinbase with over $1 million in COIN stock, is currently the leading candidate for the Federal Reserve Chair position, boasting a 56% nomination probability in prediction markets. As former President Trump's criticism of Jerome Powell intensifies, final interviews are being conducted by Treasury Secretary Scott Bessent.

Key Takeaways

Kevin Hassett has emerged as the frontrunner for the Federal Reserve Chair with a 56% nomination probability.
His ties to the crypto world raise both interest and concerns about potential conflicts of interest.
If appointed, Hassett may influence crypto policies significantly, promoting a more favorable stance towards digital assets.
Final interviews led by Treasury Secretary Scott Bessent are ongoing, with an announcement expected before Christmas 2025.

Hassett Emerges as the Leading Candidate

Currently, Kalshi prediction markets assign Kevin Hassett a 55% chance of being nominated as the next Federal Reserve Chair. This represents a 15% increase just in the past 24 hours, placing him ahead of Christopher Waller (20%) and Kevin Warsh (15%).

Fed Chair Predictions. Source: Kalshi

Hassett, who previously served as chair of the Council of Economic Advisers, is recognized for his advocacy of interest rate cuts and has established connections within the cryptocurrency industry. Recently, he has been supportive of a 50 basis point cut in December. Market confidence appears to be rising, reflected by the 10-year Treasury yield falling below 4%.

On a related note, Coinbase confirmed Hassett's involvement in its Global Advisory Council in late November 2025. This Council aims to navigate the company's interactions with global regulators, showcasing the growing intertwining of cryptocurrency firms and policymakers.

As a Distinguished Visiting Fellow at the Hoover Institution, Hassett has advocated for a more accommodating monetary policy through 2024 and 2025, which sets him apart from the current Fed Chair Jerome Powell’s more hawkish stance.

However, Hassett’s background as a Coinbase advisor and his significant stock holdings in COIN raise concerns regarding potential conflicts of interest. This connection has implications for how the Federal Reserve might approach digital assets in the future.

Trump’s Critique of Powell and Ongoing Selection Process

President Trump has increased his public critiques of Jerome Powell while the search for a new Fed chair unfolds. In a recent session in the Oval Office, Trump expressed his discontent with Powell's management.

"Have you started the interviews for the Fed chair?" a reporter asked.

Trump responded, "Yes... I think I already know my choice. Well, I liked him." He gestured toward Treasury Secretary Scott Bessent, stating, "But he’s not going to take the job."

The final interviews for the chair position are underway, and Trump has hinted at having a preferred candidate, although he is cautiously keeping details private to evaluate market reactions to the speculation. Powell's current term extends until May 2026, limiting Trump's window for any potential change. Speculation is mounting, with expectations of an announcement before Christmas 2025.

Announcement Speculation
Scott Bessent signals a possible announcement for the new Fed Chair before Christmas.

Impact on Crypto Policy and Market Trends

If Hassett takes the helm at the Federal Reserve, we may see an unprecedented level of support for cryptocurrency within the institution. His dual role as a Coinbase advisor and investor positions him uniquely among candidates for the chair position.

Juan Leon, Senior Investment Strategist at Bitwise, stated, “If Kevin Hassett becomes Fed Chair, the implications for crypto are strongly bullish. He’s an aggressive ‘dove’ who has previously criticized current rates as excessively high and advocated for deeper cuts. His leadership of the White House digital asset working group indicates his commitment to shaping pro-crypto regulations.”

A potential dovish Chair like Hassett could positively influence institutional acceptance and transparency in regulatory matters concerning digital assets.

However, some critics express concern that Hassett’s personal stakes in the crypto space might lead to conflicts of interest when crafting policies affecting cryptocurrencies. The Federal Reserve's authority significantly shapes banking regulations concerning cryptocurrency exchanges and stablecoin issuers, meaning close scrutiny will accompany any Chair with personal investments in the industry.

The contrasting approaches of Hassett and his competitor Christopher Waller highlight vastly different trajectories for future monetary policy and cryptocurrency regulation—Waller epitomizing caution and stability, while Hassett leans towards endorsing innovation and growth in the cryptocurrency sector.

As the December announcement date approaches, both financial and cryptocurrency markets stay alert for potential shifts in U.S. monetary policy and digital asset regulations.