Kevin Warsh Approaches Fed Chairmanship: Crypto Impact

The Justice Department dismissed the criminal investigation into Federal Reserve Chairman Jerome Powell on Friday, clearing obstacles for Kevin Warsh's chairmanship candidacy. North Carolina Republican Senator Thom Tillis, as a member of the Senate Banking Committee, had blocked the vote and labeled the investigation "fake." This move allows the committee to hold a confirmation vote for Warsh next week. An anonymous Republican senator speaking to Politico emphasized that Tillis had won a victory. White House Spokesman Kush Desai stated that they believe the Senate will quickly confirm Warsh.

Investigation into Kevin Warsh's Fed Chair Candidacy Lifted

The investigation had focused on allegations of cost overruns in the $2.5 billion renovation of the Fed's headquarters in Washington. During the candidacy process, Warsh disclosed holdings in dozens of companies, including crypto ventures like DYDX detailed analysis, Polymarket, Polychain Capital, Dapper Labs, Solana, and Optimism. In the Senate hearing, he argued that digital assets have become an integral part of the US financial sector and rejected the Fed issuing a central bank digital currency as bad policy. The 56-year-old Warsh served as a Fed governor from 2006-2011 and was a special assistant for economic policy in the White House; he is a professor at Stanford. Democratic Senator Elizabeth Warren criticized him as Trump's "puppet" and expressed concern about the misuse of Fed powers. Warsh described the Fed's expansion during the pandemic as the "biggest policy mistake of 40-50 years," while Powell characterized criticisms of his chairmanship as a natural result of Fed independence.

Warsh's dYdX and Crypto Connections Excite the Sector

Warsh's investments in projects like DYDX futures are filling the crypto community with hope. His confirmation could bring a more friendly approach to digital assets in Fed policies.

dYdX Price on the Rise: Technical Analysis and Supports/Resistances

Date: 2026-04-28. DYDX price at $0.16 level, 24h change +3.72%. RSI 73.89 (overbought signal), overall trend uptrend but Supertrend bearish. EMA 20: $0.1353. Supports: S1 $0.1441 (strong, ⭐80/100), S2 $0.1316 (⭐72/100). Resistances: R1 $0.1621 (⭐81/100, +1.96%), R2 $0.1790 (⭐71/100). Investors should watch for R1 breakout.

Prediction Markets and Warsh Confirmation Probabilities

Prediction markets were shaken by this development; on Kalshi, the probability of Warsh's confirmation before Powell's May 15 departure jumped to 84%, and Polymarket users raised it to 77%. Warsh's close stance to the crypto sector could open a new chapter in the Fed's digital asset policies. Sector investors predict that if confirmed, regulatory pressures may ease and US financial innovations could accelerate. Related coins SOL and OP also moved.