Trump Considers Kevin Hassett for Fed Chair, Tied to Cryptocurrency

Kevin Hassett has reportedly emerged as a frontrunner in President Donald Trump’s search for the next chair of the Federal Reserve, bringing a well-established ally with significant connections to the cryptocurrency world into contention for this pivotal role in global monetary policy.

Key Takeaways

Kevin Hassett is a leading candidate for the Federal Reserve chair, known for his ties to cryptocurrency.
President Trump prefers a chair who is aligned with his agenda for lower interest rates.
Treasury Secretary Scott Bessent is overseeing the selection process, with a potential announcement before Christmas.
Hassett’s connections to Coinbase raise questions about potential conflicts of interest in regulatory decisions.
Leadership changes at the Fed will impact the cryptocurrency market, dollar liquidity, and interest rate policies.

Hassett

Bloomberg reported on Tuesday that the current director of the White House National Economic Council has become the leading candidate as Trump begins the final phase of his selection process.

Trump's advisors describe Hassett as a trusted ally on interest rate policy, who is likely to advocate for quicker interest rate cuts compared to the current chair, Jerome Powell. Hassett has expressed his willingness to take over from Powell if selected.

Trump Searches for a Fed Chair Aligned with His Low Rate Agenda

Bringing Hassett into the Fed would strengthen Trump's influence over an institution he has openly criticized for its perceived slow response in easing interest rates. Sources familiar with the ongoing discussions indicate that the president desires a chair who aligns closely with his outlook on keeping borrowing costs low, which he believes is crucial for supporting growth in both traditional markets and emerging sectors like digital assets.

The selection process remains dynamic, as Trump has a track record of making last-minute decisions regarding personnel and policies. Advisors caution that no final determination will be made until the president officially announces his choice.

Bessent Approaches Final Decision as Fed Chair Selection Nears Completion

Behind the scenes, Treasury Secretary Scott Bessent has been leading a thorough selection process since summer. Reports indicate he recently completed a second round of interviews with Hassett and other candidates, including former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder.

Bessent remarked this week that there is a strong possibility Trump will unveil his choice before Christmas, although the exact timing ultimately lies in the hands of the president and could extend into early 2026.

The stakes are significant for both traditional markets and the cryptocurrency sector. Powell's term as Fed chair concludes on May 15, 2026. He may continue serving as a governor until January 2028 if not reappointed as chair, but the White House is anticipated to name a successor and pursue Senate confirmation well in advance to ensure a smooth transition.

Any change in leadership and direction regarding interest rates will influence dollar liquidity, risk tolerance, and the broader regulatory environment for digital assets.

Hassett's Cryptocurrency Links Spark Concerns as Fed Decision Approaches

Hassett is not merely another technocrat within the central banking sphere; for cryptocurrency traders, his connections carry weight. Earlier this year, he disclosed owning over $1 million in stock in Coinbase, a prominent cryptocurrency exchange.

A financial disclosure cited by Bloomberg valued Hassett's Coinbase stake between $1 million and $5 million, with total assets reportedly no less than $7.6 million. Additionally, the same filing showed that Hassett received a salary exceeding $50,000 from Coinbase for his role on its Academic and Regulatory Advisory Council.

This council has included other figures with ties to the Trump administration, such as former SEC chair Jay Clayton and Courtney Elwood, a former general counsel at the CIA.

These connections have sparked discussions in Washington and among cryptocurrency traders. Some argue there may be a potential conflict of interest if a former advisor to Coinbase, holding a substantial stake in the exchange, assumes control of a central bank faced with shaping regulations around stablecoins, bank exposures to digital assets, and the future of a digital dollar.

Conversely, others maintain that a chair who possesses deep industry knowledge could guide a more reasonable regulatory path and help mitigate what many in the cryptocurrency sector perceive as erratic policy changes.