The US Senate has approved Kevin Warsh as the new governor of the Federal Reserve, and a vote on his confirmation as chairman of the central bank is expected this week.
In a 51-45 vote in the U.S. Senate on Tuesday, lawmakers face on party lines, with the exception of Democratic Sen. John Fetterman, to endorse President Donald Trump’s candidacy. The House immediately approved a motion to invoke cloture voting for Warsh as the next Fed chair, setting up a potential vote soon.
Source: US Senate
The vote confirmed Warsh as Fed governor for 14 years and is expected to lead lawmakers to vote on his nomination for a four-year term as Fed chair. He previously served as a Fed governor under former U.S. Presidents George W. Bush and Barack Obama from 2006 to 2011.
Jerome Powell, whose term as head of the Fed ends Friday, has faced repeated threats from Trump to fire him. His term as Fed governor will continue until 2028, but the reshuffle of the leadership of the US central bank has the potential to move markets amid concerns about the evolution of interest rates and the independence of the Fed from White House policies.
Related: Federal Reserve Chairman Candidate’s Disclosure Includes Crypto and AI Holdings
Wars said in a 2025 interview, Bitcoin (BTC) was a “transformative” technology and “an important asset that can help inform policy makers.” However, during his confirmation hearing before the Senate Banking Committee, many Democrats wondered if, as chairman of the Fed it could remain independent of the president’s political agenda.
Increase in crypto market structure bill due Thursday
The vote on the nomination came the same week that US lawmakers on the Senate Banking Committee will choose whether to advance a digital asset market structure bill that is expected to change the oversight and regulation of cryptocurrencies. On Monday, the panel leaders published the text of his version of the Digital Asset Market Clarity Act (CLARITY), which included a compromise provision on stable coin yield that has long been a sticking point for many in the crypto and banking industries.
On Thursday, the Banking Committee will hold a meeting on CLARITY, which could put the bill up for a vote in the full Senate.
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