Kevin Hassett Emerges as Leading Candidate for Fed Chair Role

Summary:
Kevin Hassett is being considered as the top candidate for chair of the Federal Reserve under President Donald Trump, a position that could significantly impact the future of digital assets. His connections to Coinbase raise questions about potential conflicts of interest.

Key Takeaways

Kevin Hassett is currently the leading candidate for the Federal Reserve chair position under President Donald Trump.
His ties to Coinbase have raised concerns about potential conflicts of interest with Fed regulations on digital assets.
Trump reportedly prefers a candidate who supports quicker interest rate cuts to enhance economic growth and stabilize markets.
The selection process is still in motion, with an announcement likely before Christmas.

Kevin Hassett has emerged as the front-runner for the Federal Reserve chair position as President Donald Trump prepares to make a decision on the next leader of the central bank, according to a Bloomberg report released on Tuesday. Hassett, who serves as the director of the White House National Economic Council, has been described by Trump’s advisers as a trusted associate, particularly regarding interest rate policy. They believe that Hassett would advocate for lowering interest rates more swiftly than the current Fed chair, Jerome Powell.

Kevin Hassett emerges as leading Fed chair candidate - 1

Implications of Hassett’s Potential Fed Chair Role on Digital Assets

If selected, Hassett has shown a readiness to take over from Powell, as reported by Bloomberg. Sources familiar with the situation indicate that Trump is looking for a chair who aligns with his preference for lower borrowing costs to aid economic growth and facilitate the rise of digital assets.

The selection process is ongoing, with Treasury Secretary Scott Bessent overseeing a structured review. Bessent has recently concluded a second round of interviews with various candidates, including former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and Rick Rieder from BlackRock. Bessent mentioned this week that there is a "very good chance" Trump will announce his choice prior to Christmas; however, the timing may vary and could extend into early 2026.

Powell's term as Fed chair will end on May 15, 2026, but he may continue as a governor until January 2028 if he is not reappointed. The White House is expected to appoint a new chair and seek confirmation from the Senate to facilitate a smooth transition.

Hassett revealed earlier this year that he owns more than $1 million in Coinbase stock, according to a financial disclosure cited by Bloomberg. This filing indicated that his Coinbase holdings are valued between $1 million and $5 million as vested stock, contributing to total assets of at least $7.6 million. Additionally, the disclosure indicated that Hassett received $50,001 for his role on Coinbase's Academic and Regulatory Advisory Council, which has also included other individuals with connections to the Trump administration, like former SEC chair Jay Clayton and ex-CIA general counsel Courtney Elwood.

These financial ties have ignited discussions in Washington and among market participants about the potential for conflicts of interest. This concern arises from the Federal Reserve's critical role in establishing regulations for stablecoins, managing bank interactions with digital assets, and the exploration of a potential digital dollar.