The U.S. Senate has confirmed Kevin Warsh as a member of the Board of Governors of the Federal Reserve System. The vote was largely along party lines, amid Democrats’ concerns about possible pressure on the regulator’s independence.
The result was 51 to 45. Almost entirely by party. The only exception was Democrat John Fetterman, who supported the nomination of Donald Trump.
Next is a procedural vote (cloture). This has effectively paved the way for the final confirmation of Warsh as a possible Fed chair. A decision is expected in the coming days.
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If he is ultimately confirmed, Warsh will receive a 14-year term on the Board of Governors and will be eligible to serve as chair for four years. He previously worked at the Fed from 2006 to 2011 under George Bush and Barack Obama.
Against this backdrop, attention is gradually shifting to Jerome Powell. His term ends on Friday, although formally he will remain in the system until 2028. But the market is already pricing in a change in approach, especially regarding rates and the Fed’s independence. His term as Fed chair expires on Friday, though he will remain in the system until 2028. However, the market is already factoring in a scenario of a policy shift, primarily on rates and the regulator’s political independence.
Warsh has previously called bitcoin a transformational technology and noted its significance for regulators. But at the Senate hearings, some Democrats directly questioned whether he could distance himself from political influence if appointed as Fed chair.
Consideration of Crypto Market Structure Bill Set for Thursday
Amid this vote in the Senate , work continues on crypto market regulation in the U.S.. The Senate Banking Committee will consider advancing a bill in the coming days that could change oversight rules for digital assets.
On Monday, committee leadership introduced an updated version of the Digital Asset Market Clarity Act (CLARITY). The document added a compromise provision on stablecoin yields — an issue that had long remained contentious between the crypto industry and the banking sector.
On Thursday, the committee will hold a markup procedure for CLARITY , a stage where the bill may be amended before potentially being brought to a full Senate vote.
