Senate confirms Kevin Warsh to Fed board ahead of expected Chair vote
Share this article
Warsh’s confirmation to the Fed board positions the crypto-linked investor to replace Jerome Powell as chair amid inflation and digital asset policy debates.
By Helene Braun|Edited by Nikhilesh De
May 12, 2026, 5:29 p.m. 2 min read
- The Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors in a 51-45 vote, with Sen. John Fetterman of Pennsylvania the only Democrat backing him.
- Warsh, 56, faces a separate Senate vote to become Fed chair as Jerome Powell’s eight-year term ends Friday, though Powell plans to remain on the board during a federal probe into Fed headquarters renovations.
- Warsh’s past investments in crypto and blockchain firms, which he has pledged largely to divest, position him as a Fed leader familiar with digital assets as the central bank weighs rules on stablecoins, bank crypto custody and digital payment systems.
The Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors on Tuesday, moving President Donald Trump’s pick one step closer to becoming the next chair of the U.S. central bank.
Lawmakers approved Warsh in a 51-45 vote. Sen. John Fetterman (D-Pa.) was the only Democrat to support the nomination.
Warsh still must win a separate Senate vote to become Fed chair, which is expected Wednesday. Governors serve 14-year terms while the chair serves a four-year term.
If confirmed as chair, Warsh, 56, will replace Jerome Powell, whose eight-year term leading the Fed ends Friday. Powell, however, has said he plans to remain on the board until a federal probe into renovations at the Fed’s headquarters concludes.
Warsh enters the role as policymakers face renewed inflation concerns tied to the war in Iran and rising energy prices. Investors are also watching for signs of how the Fed may approach interest rates and financial market regulation under new leadership.
The former Morgan Stanley banker has drawn attention for his ties to the crypto industry. Financial disclosures filed with the Office of Government Ethics showed Warsh held investments in blockchain and digital asset companies tied to decentralized finance, crypto payments and tokenized networks through venture funds and private entities.
The holdings included exposure to firms connected to Bitcoin infrastructure, Layer 1 and Layer 2 blockchain networks and prediction markets. Warsh pledged to divest most of those investments if confirmed.
His prior investments suggest familiarity with crypto markets at a time when the Fed is weighing stablecoin regulation, bank crypto custody rules and research into digital payment systems.
More For You
By Helene Braun|Edited by Jesse Hamilton
2 hours ago
Chairman Michael Selig says the agency has already taken several states to court to prove that sports contracts aren’t just betting but that they’re derivatives.
What to know:
- The CFTC is expanding oversight of sports-related prediction markets, pursuing cooperation with other major U.S. professional leagues to police insider trading and manipulation after having signed a data-sharing deal with Major League Baseball.
- Chairman Michael Selig said the agency has sued a number of states over efforts to block federally…
