Coinbase investor Kevin Hassett leads race to replace Powell as Fed chair

Kevin Hassett, a White House economic adviser who leads the Trump administration’s digital asset working group and owns over $1 million in Coinbase stock, has emerged as the leading candidate to replace Jerome Powell as Federal Reserve chair, according to people familiar with White House deliberations.

Hassett confirmed his interest in the role during a Fox News interview Tuesday, saying he would accept the position “because I want to serve my country and I want to serve my president.” Powell’s term as chair expires in May, though his seat on the Board of Governors extends through 2028.

Crypto background influences the Federal Reserve chair debate

Hassett’s potential appointment as Federal Reserve chair carries added weight due to his unusual profile: a mainstream economist with direct professional ties to the digital asset industry. Earlier this year, he disclosed owning at least $1 million in Coinbase stock and receiving a $50,001 salary for his role on Coinbase’s Academic and Regulatory Advisory Council, established in 2023. His involvement in crypto policy is not new; he previously served on the advisory board of One River Digital Asset Management.

These connections, combined with his leadership of the White House’s digital asset working group, signal that his tenure as Federal Reserve chair would likely approach digital finance regulation differently from his predecessors. As the group’s July policy report illustrated, the administration has been attempting to balance innovation with oversight as crypto markets expand in complexity and influence.

If appointed Federal Reserve chair, Hassett would preside over the central bank during a period of heightened market volatility and rapid technological change—conditions that increasingly demand coordination between traditional monetary policy and emerging digital asset frameworks.

A crypto-leaning shortlist expands beyond Hassett

While Hassett appears to be the leading contender, he is not the only crypto-sympathetic name on Trump’s shortlist for Federal Reserve chair. Fed Governor Chris Waller—who previously encouraged bankers to take decentralized finance seriously—is among those being vetted. Michelle Bowman, the Fed’s vice chair for supervision, is also reportedly under consideration following her comments that Fed staff should be permitted to hold limited amounts of crypto to better understand its functionality.

The selection process for the next Federal Reserve chair comes at a pivotal moment. The central bank has already cut rates twice this year, totaling 50 basis points, and markets are increasingly pricing in another cut in December. According to CME’s FedWatch tool, traders see an 85% chance of a 25-basis-point reduction, suggesting that whoever assumes leadership will inherit an environment where political expectations and market pressures converge around easing financial conditions.

Implications for monetary policy and digital asset regulation

If Hassett becomes Federal Reserve chair, analysts expect closer alignment between the White House and the central bank—especially regarding interest rate policy. Trump has repeatedly criticized the Fed for not cutting aggressively enough, and Hassett’s public statements suggest he is open to pursuing a more accommodative approach.

For the crypto sector, a crypto-aware Federal Reserve chair could influence how stablecoins, exchange oversight, and digital asset custody rules evolve. Although the Federal Reserve does not directly regulate crypto exchanges, its views shape the broader regulatory ecosystem and strongly influence interagency coordination.

With Powell’s term as Federal Reserve chair set to expire in May—but his broader Board of Governors tenure extending to 2028—the decision carries long-term implications for U.S. monetary leadership, central bank independence debates, and the regulatory direction of the digital asset industry.