Who will be Trump's Fed preference? The crypto statements of potential candidates.

U.S. President Donald Trump plans to announce the name of his successor to Fed Chair Jerome Powell earlier than expected. This claim comes from the Wall Street Journal. The publication reported that Trump is considering revealing Powell's replacement during the summer months instead of September or October, due to his anger over Powell not lowering interest rates.

According to the news, Trump is considering former Fed member Kevin Warsh and National Economic Council Director Kevin Hassett for the Fed chair position. Meanwhile, Treasury Secretary Scott Bessent is also being recommended to Trump. Other candidates include former World Bank President David Malpass and current Fed member Christopher Waller.

It is stated that Trump’s early announcement of the new Fed chairman will affect investor expectations regarding interest rates, and that the candidate’s name may try to steer monetary policy before Powell’s term ends.

So how have the potential candidates behaved regarding cryptocurrencies so far and what statements have they made?

Kevin Hassett

According to the statements reflected to the public, Kevin Hassett and Scott Bessent seem closer to cryptocurrencies compared to the other two names. In recent months, it has emerged that Hassett had at least $1 million worth of shares in the cryptocurrency exchange Coinbase. Currently, Hassett, who is at the head of the White House National Economic Council, also served as an advisor at Coinbase for a period. Under Hassett's leadership, the National Economic Council has established a working group on digital assets that proposes regulations aimed at increasing the U.S.'s leadership in the cryptocurrency and financial technology sectors.

Scott Bessent

Another Fed candidate, U.S. Treasury Secretary Scott Bessent, stated that cryptocurrency is freedom. In an interview with Fox Business at the end of 2024, Bessent said, "Crypto means freedom, and the crypto economy is here to stay." Last March, he expressed that they would adopt a policy embracing Bitcoin. Bessent stated, "I am in favor of the U.S. being a leader in cryptocurrency. Instead of selling Bitcoin, we need to accumulate it as a strategic reserve." The Treasury Secretary had reiterated last month during a session in the House of Representatives Financial Services Committee that they want to make the U.S. a global hub for digital assets. He also emphasized that dollar-backed stablecoins "could strengthen the global dominance of the dollar" and criticized the previous administration's policies aimed at destroying cryptocurrency, describing digital assets as "one of the most significant developments happening in the world."

On the other hand, David Malpass and Christopher Waller are portraying a different profile.

David Malpass

During his presidency of the World Bank, Malpass expressed his doubts about the practical use of cryptocurrencies at the Atlantic Council conference held in 2023. Malpass noted that the real economic use cases and value preservation properties of cryptocurrencies are uncertain, emphasizing that he sees cryptocurrencies as assets open to speculation. He stated, "It has yet to be proven what additional value digital assets like Bitcoin provide beyond the ability to execute transactions quickly." Additionally, he emphasized that central banks need to modernize their payment systems to compete with crypto technologies.

Christopher Waller

Finally, Fed member Christopher Waller classified cryptocurrencies as "speculative products." At an event he attended in February 2023, Waller stated, "Crypto assets are, in my opinion, only speculative products, just like a baseball card. Their value is entirely tied to belief and they can be zeroed out." He mentioned that he personally does not invest in crypto, and that investors could experience significant losses that cannot be covered by taxpayers. He also noted that the crypto bankruptcies experienced in 2022 demonstrated the fragility of the sector. In November of last year, Waller made statements maintaining his stance against a digital currency to be issued by the Fed. He suggested that if the Fed were to issue a digital currency for individuals, it could hinder innovation in the private sector, and he expressed a preference for solutions developed by the private sector instead of CBDC. Waller reiterated the importance of keeping the risks of crypto assets under control and tightening regulations.

How will the Fed chairman be selected?

The President of the United States, Donald Trump, will nominate a person he deems suitable for the position of Fed chairman. Then, the Senate Banking Committee will hold a hearing for the nominee and will send it to the Senate floor in the next phase. If a majority is achieved in the Senate voting, the nominee will be officially appointed. The term of the Fed chairman is limited to four years.

Published: June 26, 2025 22:27 Last Updated: June 26, 2025 22:28