U.S. DOJ Drops Criminal Probe Into Fed Chair Powell, Clearing Path for Crypto-Friendly Kevin Warsh Confirmation

Gate News message, April 26 — The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell on Friday (April 25), clearing the way for the Senate to confirm incoming central bank chair Kevin Warsh. U.S. Attorney for the District of Columbia Jeanine Pirro announced the decision to close the investigation, which had been brought earlier this year over allegations of false statements regarding the Federal Reserve's headquarters renovation.

The move comes just days after Warsh testified before the Senate Banking Committee during his nomination hearing. Warsh, who holds dozens of crypto investments including dYdX and Dapper Labs, stated that digital assets were "already part of the fabric of our financial services industry in the United States" when asked about their role in the financial sector.

Senator Thom Tillis, R-N.C., a member of the Senate Banking Committee whose vote is critical for Warsh's confirmation, had previously called for the investigation to end and stated he could not support Warsh's nomination until the probe was dropped. The DOJ's decision likely removes this obstacle to Tillis's support.

Observers have noted that clearing Warsh's nomination could create space for the Senate Banking Committee to advance broad crypto market legislation, including the Clarity Act, which has remained stalled in committee for over a year. Grayscale Head of Research Zach Pandl posted on Friday that after the committee confirms Warsh, it could proceed with a markup for the Clarity Act.