DOJ Closes Investigation Into Fed Chair Powell, Clearing Path for Crypto-Friendly Kevin Warsh

Gate News message, April 25 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to the Senate's confirmation of Kevin Warsh as the incoming Fed chair. U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure on Friday, ending the probe that was launched earlier this year over allegations of false statements regarding the renovation of the Federal Reserve's headquarters.

Warsh, who holds numerous crypto investments including positions in dYdX and Dapper Labs, testified before the Senate Banking Committee during his nomination hearing just days before the DOJ's announcement. When asked about digital assets' role in the financial industry, Warsh stated that they were "already part of the fabric of our financial services industry in the United States." The DOJ's decision is particularly significant for Sen. Thom Tillis, R-N.C., a key member of the Senate Banking Committee whose vote is essential for Warsh's confirmation. Tillis had previously stated he would not support Warsh's nomination until the investigation was closed.

With the investigation now concluded, observers suggest the Senate Banking Committee could move forward with advancing crypto market legislation, including the Clarity Act, which has stalled in the committee over the past year. Grayscale Head of Research Zach Pandl commented on Friday that after Warsh's confirmation, the committee could proceed with a markup for the Clarity Act.