Background on Kevin Warsh
Kevin Warsh is a former Federal Reserve governor and longtime financier who was recently nominated by former President Donald Trump to return as chair of the Federal Reserve.
His nomination comes amid heightened scrutiny of the Fed’s independence and ongoing political pressure to lower interest rates.
Advisory Role at Anchorage Digital
Before the nomination, Warsh served for years as an advisor to Anchorage Digital, a crypto‑bank that earned the first U.S. federal charter for a digital‑asset institution.
- Listed as an advisor on Anchorage’s website until at least Jan. 16, 2024.
- Removed from the site shortly after that date, according to the Internet Archive.
- Anchorage co‑founder Nathan McCauley publicly praised Warsh’s appointment, calling him “excited” about the nomination.
Anchorage Digital and Tether’s USAT Stablecoin
Anchorage Digital is the issuer of Tether’s new U.S. dollar‑backed stablecoin, USAT, which Tether markets as “made in America” and the first stablecoin to comply with the 2023 U.S. stablecoin framework.
The stablecoin’s reserves include Bitcoin, gold and other assets that do not fully meet the new regulatory requirements, but Tether says USAT will use a traditional bank as its infrastructure.
Connections to Cantor Fitzgerald and Howard Lutnick
Howard Lutnick, the Commerce Secretary‑designate, previously led Cantor Fitzgerald, the investment bank that custodies a portion of Tether’s reserves.
If Warsh remained an advisor to Anchorage, it would create a direct link between the Fed chair nominee and a firm involved in stablecoin reserve custody.
- Cantor Fitzgerald recently divested Lutnick’s personal interests to satisfy ethics rules.
- Cantor also serves as the designated reserve custodian and preferred primary dealer for USAT.
Political Context and Fed Independence Concerns
Trump’s nomination of Warsh occurs as the administration pressures the Fed to cut rates, and a DOJ investigation into current Chair Jerome Powell has intensified tensions.
Critics argue that Warsh’s business relationships with crypto firms and Cantor could compromise the perceived independence of the central bank.
Implications for Confirmation
Trump has expressed confidence that Warsh will secure Senate approval, describing him as a “high‑quality person” who could attract bipartisan support.
Senators are likely to weigh his extensive financial experience against potential conflicts of interest stemming from his crypto advisory work and ties to firms linked to the new stablecoin regime.