Justice Department concludes investigation into Federal Reserve Chair Jerome Powell, paving the way for crypto-friendly Kevin Waugh

April 25 — The U.S. Department of Justice has concluded its criminal investigation into Federal Reserve Chair Jerome Powell and removed a key obstacle to Senate confirmation of Kevin Waugh (who will serve as Fed chair).

On Friday, U.S. District Attorney for the District of Columbia, Jeanine Nieh Piero, announced the decision, ending an investigation that had been launched earlier this year. The probe stemmed from allegations of false statements during the renovation process of the Federal Reserve headquarters.

Waugh holds multiple crypto investments, including holdings in dYdX and Dapper Labs. During his nomination hearing (just days before the Justice Department announced the probe’s conclusion), he testified before the Senate Banking Committee on the matter.

When asked about the role of digital assets in the financial industry, Waugh said they “are already part of the structure of our American financial services industry.” The Justice Department’s decision is especially important for Senator Tom Tillis (Republican, North Carolina). Tillis is a key member of the Senate Banking Committee, and his vote is crucial for Waugh’s confirmation.

Tillis previously said he would not support Waugh’s nomination before the investigation ended. With the investigation now complete, observers believe the Senate Banking Committee may continue to advance crypto-market legislation, including the Clarity Act, which has stalled at the committee level over the past year.

On Friday, Grayscale research director Zach Pundel said that after Waugh is confirmed, the committee could proceed with a markup of the Clarity Act.