Kevin Hassett, a former White House economic adviser, has reportedly become the leading candidate in Donald Trump’s search for the next Federal Reserve chair. His potential appointment places a longtime ally with significant connections to the cryptocurrency industry at the helm of global monetary policy.

According to a Bloomberg report on Tuesday, Hassett is now the frontrunner as the selection process enters its final phase. Advisers suggest Trump favors Hassett because he is a trusted figure who would likely move more quickly to cut interest rates than the current chair, Jerome Powell. Hassett has previously indicated he would accept the position if offered.

Trump’s Push for Lower Interest Rates

Appointing Hassett would strengthen Trump’s influence over the Federal Reserve, an institution he has often criticized for not easing monetary policy fast enough. Sources familiar with the discussions say the president is determined to find a chair who shares his preference for lower borrowing costs, which he believes would support economic growth and financial markets, including digital assets.

The situation remains fluid, as Trump is known for making last-minute changes to personnel decisions. Aides have cautioned that nothing is official until an announcement is made.

Selection Process Nears Conclusion

Treasury Secretary Scott Bessent has been leading a formal selection process since the summer, recently concluding a second round of interviews. Besides Hassett, other contenders included former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder.

Bessent stated this week that there is a “very good chance” Trump will name his choice before Christmas, but the announcement could be delayed until early 2026. Powell’s term as chair is set to end on May 15, 2026. A change in leadership and interest rate policy at the Fed will have major implications for dollar liquidity, risk appetite, and the regulatory environment for crypto.

Hassett’s Coinbase Links Under Scrutiny

For the crypto industry, Hassett is a particularly noteworthy candidate. Earlier this year, he disclosed owning a significant stake in Coinbase, with financial filings showing the vested stock valued between $1 million and $5 million. His total assets are estimated to be at least $7.6 million.

The same disclosure, submitted to the Office of Government Ethics, revealed that Hassett earned over $50,000 from Coinbase for his work on its Academic and Regulatory Advisory Council. This council also includes other figures with connections to Trump, such as former Securities and Exchange Commission (SEC) chair Jay Clayton and former Central Intelligence Agency (CIA) general counsel Courtney Elwood.

These connections have sparked a debate in Washington. Critics worry about a potential conflict of interest if a former Coinbase adviser with a large personal stake in the exchange leads a central bank considering new rules for stablecoins and digital assets. Others argue that a chair with deep industry knowledge could foster more pragmatic and consistent regulation, reducing the policy uncertainty many in the sector currently face.

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