US President Donald Trump formally sent the nomination of pro-Bitcoin Kevin Warsh to the US Senate on Wednesday, beginning a process that could replace Jerome Powell when his term ends in May.
Reports say the White House filed paperwork to seat Warsh as chair for a four-year term and as a governor for a longer term on the central bank’s board.
Nomination Sent To The Senate
According to multiple outlets, the nomination now moves to the Senate Banking Committee for review. The committee will decide whether to hold hearings and then whether to send the nomination to the full Senate for a confirmation vote.
The timing is uncertain. Some senators have already signaled they may slow the process until a separate Justice Department inquiry is resolved.
Bitcoin Proponent: Warsh’s Record And Views
Warsh served at the Fed in earlier years. Reports note he has talked openly about Bitcoin, calling it a kind of “new gold” for younger investors and saying it does not make him nervous.
Markets reacted quickly when the nomination was announced earlier: Bitcoin, at the time of writing, climbed past the $70,000 level, and some short positions were liquidated as traders digested the news.
Warsh’s background mixes public service and private finance. He was on the Fed’s board during turbulent times and later worked in the private sector and at a policy research center. That mix is part of what makes him attractive to some senators who favor lower rates, and worrisome to others who worry about the Fed’s independence.
How Markets Read The Move
Reports say traders see a Fed chair who favors rate cuts as friendly to risk assets. Bitcoin’s price moves reflected that view in the hours after the filing reached the Senate.
Some analysts cautioned that a faster shift in policy would depend on data, not headlines, and that inflation and global events complicate any easy return to lower borrowing costs.
Political Hurdles Ahead
Opposition is already forming. A Republican member of the Banking Committee has said he may block nominations until outside investigations are cleared, and leading Democrats have voiced concerns about Warsh’s alignment with the administration.
Those objections mean a smooth confirmation is far from certain, even with a friendly Senate majority.
Reports note the next formal steps are committee hearings, written questionnaires, and witness appearances. The committee could vote to advance Warsh, or it could stall the nomination.
If the committee approves him, the full Senate would then take up the matter. If hearings proceed, senators will ask about his views on inflation, interest rates, and the role of cryptocurrencies in financial stability.
Featured image from Unsplash, chart from TradingView
