Fed Chair Nominee Wosh Supports Incorporating Cryptocurrency into the Financial System, Lawmakers Question Regulation

Odaily Planet Daily News reports that Kevin Warsh stated at a Senate hearing that digital assets “have become part of the U.S. financial system,” and supports integrating them into the financial system to provide investors with more opportunities and protections.

This statement is seen as a policy signal of his generally open stance toward the crypto industry if he were to become Federal Reserve Chair. Warsh has previously described Bitcoin as “an important asset that helps inform policy making.”

However, Elizabeth Warren expressed concerns during the hearing, mentioning potential risks in the crypto space such as “sock puppet” accounts, and emphasized the need for strengthened regulation and abuse prevention.