Kevin Warsh Nominated as Fed Chair, Supports Bitcoin as Policy Constraint

The White House formally submitted Kevin Warsh's nomination for Chairman of the Federal Reserve to the Senate this week, marking the start of the hearing and voting phase of the nomination process. Warsh served as a Governor of the Federal Reserve from 2006 to 2011 and has remained actively involved in macroeconomic policy discussions since leaving office, with his views closely followed by the market. This nomination comes at a time when inflationary pressures and interest rate trends are key policy focuses, and senators will conduct in-depth questioning on monetary policy, financial regulation, and other issues.

Warsh has repeatedly expressed positive views on digital assets in past interviews. He believes that Bitcoin has the role of a "policy gatekeeper," which can effectively restrain the central bank's tendency for monetary expansion, provide a real monetary discipline for the financial system, and serve as a reliable store of value. However, he also emphasized that Bitcoin should not be regarded as a substitute for legal tender, but rather as a systemic check and balance.

Meanwhile, cryptocurrency exchange Kraken has successfully obtained a Federal Reserve master account, becoming the first crypto institution to receive this qualification. This account allows it to directly access the Fed's payment and clearing system, significantly reducing its reliance on traditional intermediary banks, marking a key step in the integration of crypto assets with the mainstream financial system. These two developments together highlight that digital assets are accelerating their integration into the core agenda of national financial policy. As Warsh's nomination hearing progresses, the relationship between Bitcoin and central banks may usher in a deeper level of policy discussion.