Sources say Kevin Warsh’s nomination to lead the Federal Reserve has stalled, raising fresh uncertainty over US monetary policy and crypto market rate expectations.
Sources say Kevin Warsh’s nomination to lead the Federal Reserve has stalled, raising fresh uncertainty over US monetary policy and crypto market rate expectations.
Kevin Warsh’s nomination to become the next Federal Reserve Chair has stalled in the Senate, blocked by a confluence of political resistance, missing paperwork, and a DOJ investigation into current Chair Jerome Powell. With Powell’s term expiring in May 2026, the delay raises fresh uncertainty over U.S. monetary policy direction and its ripple effects on crypto markets.
President Trump formally nominated Warsh, a former Fed Governor who served from 2006 to 2011, as both Chairman and Member of the Board of Governors on March 4, 2026. The White House initially framed the pick to wide acclaim, positioning Warsh as a candidate who could align Fed policy more closely with the administration’s economic agenda.
That momentum has since collapsed under three simultaneous pressures.
First, Sen. Thom Tillis (R-NC), a member of the Senate Banking Committee, has vowed to block all Fed nominees from reaching a full Senate floor vote until the DOJ’s criminal investigation of Jerome Powell is resolved. Without Tillis’s support, the nomination cannot clear the Banking Committee.
Second, the White House had not submitted required financial disclosure paperwork to the Senate Banking Committee as of mid-March. The likely holdup involves complicated disclosures related to Warsh’s marriage into the billionaire Estée Lauder family, according to Semafor reporting. No confirmation hearing has been scheduled.
Third, Democrats have mounted aggressive opposition. Sen. Elizabeth Warren sent an 8-page letter to Warsh on March 26 questioning his record during the 2008 financial crisis.
“I write to better understand what, if anything, you’ve learned from your failure to prioritize American families over Wall Street before, during, and after the 2008 financial crisis while serving as a member of the Board of Governors of the Federal Reserve System. Rather than implementing policies to improve the lives of the American public, you ignored the obviously excessive risk-taking on Wall Street; worked tirelessly to bail out large financial institutions after their bets blew up the economy; and advocated for policies that would have further harmed the millions of Americans who lost their jobs, were thrown out their homes, and saw their life savings evaporate.”
Sen. Elizabeth Warren, in a letter to Kevin Warsh, March 26, 2026
Warsh declined to comment on the letter.
The DOJ investigation itself has become a flashpoint. On March 11, District Court Judge James Boasberg blocked DOJ subpoenas issued to the Federal Reserve, writing that there was “abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will.” U.S. Attorney Jeanine Pirro has vowed to appeal the ruling.
Even if one of these obstacles clears, the others remain. The convergence of a political blockade, incomplete paperwork, bipartisan opposition, and a court-blocked DOJ probe creates a multi-front stall that no single resolution can fix.
The identity of the next Fed Chair directly shapes rate expectations, and rate expectations move crypto. Bitcoin has historically rallied on signals that interest rate cuts are coming and sold off on hawkish surprises. A prolonged leadership vacuum at the Fed extends uncertainty over the rate trajectory into the second half of 2026.
Warsh is widely viewed as more hawkish on inflation than Powell based on his 2006-2011 tenure, but he was also seen as more amenable to White House pressure on rates. Trump has publicly called for lower interest rates, and Warsh’s nomination was interpreted by markets as a signal that the administration wanted a more compliant Fed Chair.
Bitcoin traded near $87,300 at press time. Analysts tracking macro correlations note that prolonged uncertainty about Fed leadership translates into prolonged uncertainty about whether rate cuts will materialize, a dynamic that has previously weighed on risk assets including BTC.
The stall also reinforces a broader environment of macro headwinds for Bitcoin. As recent analysis on whether BTC has found its bottom has highlighted, uncertainty around U.S. monetary policy remains one of the key variables traders are watching. Some analysts have also pointed to recent BTC price weakness and liquidation data as evidence that macro uncertainty is already weighing on positioning.
Jerome Powell said earlier in March that he would remain as “chair pro tem” if Warsh is not confirmed by May, when Powell’s term as Fed Chair expires. That fallback scenario means continued Powell leadership, continued rate-cut uncertainty, and no policy reset that Warsh’s appointment was expected to bring.
Prediction markets currently price the odds of the Warsh nomination being withdrawn by May 15 at just 3%, with the “No” contract trading at $0.97 on Polymarket with $64,000 in volume. Markets do not expect the nomination to be pulled entirely; they expect a prolonged stall.
Tillis’s blockade could extend well beyond May. The senator has conditioned his support on the resolution of the DOJ investigation into Powell, and with Pirro appealing the court ruling that blocked DOJ subpoenas, that investigation has no clear end date. In a worst-case scenario for the White House, Tillis’s hold could delay all Fed nominees until he retires from the Senate in January 2027.
According to unconfirmed reports from CNN, Warsh may also face questions about ties to Jeffrey Epstein during any eventual confirmation hearing, presenting yet another potential hurdle.
For crypto market participants, the key variable to watch is whether the White House submits the missing financial disclosure paperwork, which would at least allow a confirmation hearing to be scheduled. Without that procedural step, the nomination cannot advance regardless of what happens with the Tillis blockade or the DOJ probe. Meanwhile, developments in crypto infrastructure expansion across Asia Pacific suggest that institutional participants are not waiting on U.S. regulatory clarity to build.
The next concrete milestone is Powell’s term expiration in May 2026. If Warsh remains unconfirmed by then, the Fed enters uncharted territory with a “chair pro tem” arrangement, and crypto markets will price in an extended period of policy status quo.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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