Crypto Friendly Economist Leads Fed Shortlist

Kevin Hassett, White House economic adviser and director of the National Economic Council, has emerged as the leading candidate to become the next chair of the Federal Reserve, according to Bloomberg. If selected, he would replace Jerome Powell when his term expires in May — and cryptocurrency markets could gain their most sympathetic Fed leader to date.

Architect of Trump’s digital agenda

Hassett is one of the central figures shaping Trump’s approach to digital assets. He leads the presidential working group on cryptocurrency, launched in January. In July, the group released a major policy paper outlining recommendations for future regulation and development of digital assets in the U.S. It was widely viewed as the administration’s first systematic attempt to establish a clear national framework for the sector.

His ties to the industry run deeper. In June, Hassett disclosed that he owns at least one million dollars in Coinbase stock and received more than 50,000 dollars as a member of the company’s advisory board. He also held an advisory role at One River Digital Asset Management and chaired the Council of Economic Advisers during Trump’s first term.

These connections raise questions about potential conflicts of interest — but also suggest that the Fed could, for the first time, be led by someone who genuinely understands digital assets.

A supporter of lower rates — and a reason for Trump’s backing

Hassett’s support for lower interest rates is a key reason he has risen to the top of the shortlist. Trump and his advisers have consistently criticized the Fed’s current stance and are calling for faster and deeper rate cuts to stimulate the economy and financial markets.

The Fed has cut rates twice this year, totaling 50 basis points. According to CME’s FedWatch tool, markets currently expect a “Christmas” rate cut of another 25 basis points, with an 85 percent probability. Appointing Hassett could signal a willingness to continue easing.

Asked by Fox News whether he would accept the role, Hassett replied: “Of course I’d have to say yes, because I want to serve my country and my president.”

Crypto enters the upper ranks of financial policy

While Hassett remains the frontrunner, other technologically open candidates are also being discussed. Fed Governor Chris Waller defended the importance of decentralized finance in August, and Vice Chair for Supervision Michelle Bowman said Fed employees should be able to invest small personal amounts in cryptocurrency to better understand how it works.

Such a crypto-friendly shortlist is unusual in U.S. financial leadership — and signals a shift toward a more modern, pragmatic regulatory approach.

What a leadership change could mean for markets

If Kevin Hassett became Fed chair, the U.S. central bank would for the first time be led by someone strongly supportive of digital assets. For the crypto industry, it could bring more regulatory clarity, stronger institutional engagement, and potentially a monetary policy that better reflects the expectations of tech-oriented investors.

The decision has not yet been made. But one thing is clear: cryptocurrency has moved from the margins to the center of the debate about who should lead the world’s most powerful central bank.

Sources:

https://www.bloomberg.com/news/articles/2025-11-25/hassett-emerges-as-frontrunner-in-trump-fed-chair-audition

https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf

https://www.bloomberg.com/news/articles/2025-06-03/trump-aide-hassett-reveals-coinbase-stake-of-at-least-1-million

https://www.cnbc.com/2025/08/13/trump-considering-11-candidates-for-fed-chair-including-david-zervos-and-rick-rieder-sources-say.html

https://www.foxnews.com/video/6385593306112

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html