DOJ Drops Probe into Powell, Clearing Path for Crypto-Friendly Kevin Warsh to Lead Fed

Gate News message, April 26 — 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 next Fed chair. U.S. Attorney for the District of Columbia Jeanine Pirro announced the decision on Friday (April 24) via X, stating the investigation into allegations of false statements regarding the Federal Reserve's headquarters renovation would be closed.

Warsh, who holds dozens of crypto investments including dYdX and Dapper Labs, testified before the Senate Banking Committee during his nomination hearing just days before the DOJ announcement. When asked about digital assets' role in the financial industry, Warsh stated that cryptocurrencies are "already part of the fabric of our financial services industry in the United States."

Sen. Thom Tillis, R-N.C., a key member of the Senate Banking Committee whose vote is essential for Warsh's confirmation, had previously called for the investigation to be closed, saying he could not support the nomination until the probe was dropped. The DOJ's decision removes this obstacle to his confirmation.

Analysts suggest that confirming Warsh could accelerate progress on the Clarity Act, comprehensive crypto market legislation that has stalled in the Senate Banking Committee for over a year. Grayscale Head of Research Zach Pandl posted on X that after the committee confirms Warsh, it could move forward with a markup of the Clarity Act.