$DYDX DOJ Halts Investigation Into Powell, Paving the Way for Crypto-Friendly Kevin Warsh to Lead the FedNews Gate, April 26 — The U.S. Department of Justice has ended its criminal investigation into Federal Reserve Chair Jerome Powell, clearing the way for the Senate to confirm Kevin Warsh as the next Fed chair. U.S. Attorney for the District of Columbia Jeanine Pirro announced the decision on Friday (April 24) via X, saying that the investigation into alleged false statements related to the renovation of the Federal Reserve headquarters will be closed.

Warsh, who has dozens of crypto investments including dYdX and Dapper Labs, testified before the Senate Banking Committee during his nomination hearing just days before the DOJ announcement. When asked about the role of digital assets in the financial industry, Warsh said that cryptocurrency “has already become part of the fabric of our financial services industry in the United States.”

Sen. Thom Tillis, R-N.C., a key member of the Senate Banking Committee whose vote is crucial for Warsh’s approval, had previously asked for the investigation to be closed, saying he could not support the nomination until the investigation was dropped. The DOJ decision removes this obstacle to his approval.

Analysts suggest that confirming Warsh could accelerate progress on the Clarity Act, comprehensive legislation on the crypto market that has been stalled in the Senate Banking Committee for more than a year. Grayscale Research Head Zach Pandl posted on X that once the committee confirms Warsh, they can move forward with markup discussions on the Clarity Act.