DOJ Drops Criminal Investigation into Powell, Clearing Path for Crypto-Friendly Warsh as Next Fed Chair

Gate News message, April 25 — The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, clearing the way for the Senate to confirm Kevin Warsh as the incoming Federal Reserve chair. On Friday, April 24, U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure of the investigation, which had been initiated earlier this year over allegations of false statements regarding renovations to the Federal Reserve's headquarters.

Warsh testified before the Senate Banking Committee during his nomination hearing just days before the DOJ's decision. The Fed pick, who holds dozens of crypto investments including stakes in dYdX and Dapper Labs, signaled a crypto-friendly approach to financial regulation. When asked whether digital assets were incorporated into the financial industry, Warsh responded affirmatively, stating that they were "already part of the fabric of our financial services industry in the United States."

The investigation's closure removes a key obstacle to Warsh's confirmation. Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee whose vote is critical to advancing Warsh's nomination, had previously stated he could not support the nomination while the probe remained active. With the investigation now closed, Tillis is expected to vote in favor. Market observers noted that Warsh's confirmation could accelerate broader crypto market legislation. Grayscale Head of Research Zach Pandl commented on X that once the Senate Banking Committee confirms Warsh, it could move forward with markup on the Clarity Act, a bill that has stalled in the committee for over a year.