The new Federal Reserve Chair is sworn in! Will his cryptocurrency holdings lead to a policy honeymoon for the market?

U.S. President Donald Trump presided over the swearing-in ceremony of Kevin Warsh, the newly appointed Federal Reserve Chair, at the White House. Warsh holds a large amount of crypto assets, and the market expects a more friendly regulatory environment in the future.

A nearly forty-year hiatus for a White House swearing-in ceremony, a battle for supremacy between politics and monetary policy

U.S. President Donald Trump personally presided over the swearing-in ceremony of Kevin Warsh, the newly appointed Federal Reserve (Fed) Chair, at the White House, formally marking the end of Jerome Powell’s tenure as the head of the central bank. This ceremony broke with precedent—since Alan Greenspan took office in 1987, it was the first time a Fed Chair was sworn in at the White House, and the symbolic meaning is self-evident.

Image source: X/@WhiteHouse Trump personally presided over the swearing-in ceremony of the newly appointed Federal Reserve Chair Kevin Warsh at the White House

Although Warsh narrowly passed the Senate by a slim margin of 54 to 45, and was even sharply criticized by Democratic Senator Elizabeth Warren as Trump’s “puppet,” Trump made his stance clear at the ceremony. He said he hopes Warsh will maintain independence, while emphasizing that the United States will resolve debt issues through “economic growth.”

Trump bluntly stated that the government’s goal is to rein in inflation, but it must never hinder the great development of the economy. These remarks have sparked imagination about future monetary supply expansion and low-interest-rate policies.

Fed Chair with a portfolio full of crypto—will digital assets enter a policy honeymoon period?

Unlike former Chair Jerome Powell, who showed little interest in cryptocurrencies, the 56-year-old Warsh is himself a seasoned crypto investor. According to financial disclosure data released in early 2026, among his total assets of up to 190 million, he holds more than 20 cryptocurrencies and blockchain projects, including well-known infrastructure and prediction market platforms such as Solana, Optimism, and Polymarket.

• Related news: He disclosed he has crypto assets! Federal Reserve Chair candidate Kevin Warsh’s public chain and DeFi plans fully revealed

In the past, Warsh has publicly praised Bitcoin ($BTC) as the “new gold” for the younger generation, and he strongly opposed issuing a U.S. central bank digital currency (CBDC). Although, according to the Fed’s ethics requirements, he must divest from assets that could create conflicts of interest, his open stance toward blockchain finance has led the market to be optimistic that the regulatory environment in the future will be more friendly. Industry insiders are closely watching whether this new leader can open wider doors for the banking industry to stablecoin issuers and decentralized finance (DeFi).

Cutting rates or raising rates? Wall Street consensus and market-side predictions sharply diverge

Even though Trump has repeatedly signaled support for a low-interest-rate environment, Wall Street and broad economic data are telling a completely different story. Driven by inflationary pressure stemming from Middle East geopolitical conflicts and demand boosted by the AI boom, CME’s FedWatch data shows that investors assign a 0 probability to rate cuts for all of 2026.

Image source: CME FedWatch—investors’ forecast shows a zero probability of rate cuts for all of 2026

What’s more, as many as 67% to 70% of traders are betting that the Federal Reserve will raise interest rates by at least 25 basis points (BPS) at the December meeting of the Federal Open Market Committee (FOMC), and some economists even worry that if inflation continues to run out of control, the rate hikes could reach as high as 100 basis points.

However, analysts such as Lawrence Lepard and other minority voices are pushing back against the majority view, arguing that Warsh will ultimately carry out a rate-cutting path. They attribute inflation to temporary phenomena caused by war, or use the argument that AI can improve productivity to give easing policies a way out. This extreme tug-of-war between market expectations and political pressure is laying the groundwork for major turbulence in the financial direction ahead.

Image source: X/@LawrenceLepard Market analyst Lawrence Lepard and others in the minority believe that Warsh will ultimately follow a rate-cutting path

Bitcoin trades in a wait-and-see mode, with liquidity becoming the only answer for the future market

Amid the historic transition at the top level of the Federal Reserve, the initial reaction in the Bitcoin market appears relatively calm. The price has been fluctuating narrowly within the $76,000 to $77,000 range, reflecting traders’ cautious mindset before policy clarity.

Crypto Is Macro Now newsletter author Noel Acheson points out that, amid the current macro environment filled with uncertainty, Warsh may adopt a “wait-and-see” delaying strategy to buy time. In the next few months, the performance of the cryptocurrency market will no longer depend solely on the friendly remarks of the newly appointed chair; it will directly hinge on how the Federal Reserve actually handles market liquidity, bank regulation, and inflation data.

If the government ultimately chooses to keep printing money to support economic growth, the depreciation of fiat currency will be unavoidable. This, in turn, provides the strongest hedge narrative for digital assets like Bitcoin. The market is holding its breath for Warsh’s first FOMC meeting in mid-June, to find out the exact direction of the next wave of capital flows.