Who will lead the Fed: Key candidates and their stance on cryptocurrencies

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The Federal Reserve is entering a phase where any personnel decision can shift the balance in global markets. The term of the current Chair is coming to an end, and the U.S. economy is caught between two opposing forces: slowing inflation and the risk of another downturn in growth. In such moments, it is the Fed that determines whether the market receives additional liquidity or, conversely, faces a continued tightening of lending conditions.

For the crypto market, this is more than just policy news from Washington. Monetary policy directly influences risk appetite, access to capital, the functioning of exchanges, and even how regulators interpret stablecoins and custodial services. A more accommodative Fed typically boosts interest in digital assets, while higher rates and stricter oversight can cool the market quickly.

That is why investors are focusing on the list of contenders, which for the first time in years includes figures with direct experience in the cryptocurrency sector. A change in leadership could mark the boundary between a conservative status quo and a more open approach to innovation within the U.S. financial infrastructure.

Kevin Hassett: An influential economist

In the media, Kevin Hassett is widely described as the unofficial frontrunner. He has not been confirmed as an official candidate, but his name appears more often than others — primarily due to his political connections and clear economic stance.

Hassett is a former presidential advisor, ex-chair of the Council of Economic Advisers, and a figure who worked within various Federal Reserve structures over the years. His views on monetary policy are noticeably more dovish than those of part of the current Fed leadership: he openly supports a faster pace of rate cuts and a return to more accessible lending. For traditional markets, this implies a weaker dollar; for risk assets, it means additional breathing room.

His ties to the crypto industry are atypical for a potential Fed Chair. Hassett has advised the exchange Coinbase and reported owning its stock valued between $1–5 million. In addition, he led the White House working group on digital assets, effectively making him one of the few high-level officials who directly engaged with crypto market regulation.

Against this backdrop, the crypto community is already viewing Hassett as a potentially crypto-friendly choice. Discussions on social media highlight that his appointment could result in faster rate cuts and a softer regulatory approach toward digital assets. For parts of the market, this looks like an opportunity for a more supportive macro environment and clearer rules for the industry.

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Potentially, his approach could indeed shift policy toward a more liberal stance on stablecoins, banking access for crypto companies, and on-chain payments. At the same time, questions about conflicts of interest remain: some experts argue that such close ties to a major crypto player may become a stumbling block during confirmation.

Other contenders: Conservative and crypto-neutral figures

Despite the attention around Hassett, the shortlist also includes several figures viewed in Washington as more predictable and politically safer options.

Christopher Waller is a current member of the Federal Reserve Board of Governors. He represents the classic "hawkish" school that prioritizes price stability over stimulating growth. His approach would mean a slower pace of rate cuts and minimal experimentation in financial regulation. For the crypto market, this is a scenario of cautious neutrality: neither hostile nor openly supportive.

Kevin Warsh, a former Fed governor, is frequently mentioned during transitions between administrations. He has a reputation as an advocate of tight monetary policy and a critic of what he sees as excessive liquidity. Under his leadership, the crypto market would be unlikely to see a dovish stance toward risk assets or stablecoins.

Michelle Bowman, a member of the Board of Governors, focuses on oversight of banks and regional financial institutions. Her approach to digital assets is cautious, with a strong emphasis on risks to traditional financial structures. If she were to lead the Fed, macro policy would remain close to the current status quo.

Rick Rieder, BlackRock’s head of global fixed income, is sometimes mentioned in the context of new economic appointments. Despite his extensive market experience, he does not have a defined crypto profile. His nomination would signal a pragmatic but restrained course, with new fintech solutions evaluated primarily through the lens of capital-market risks.

All of these contenders represent a path in which the Federal Reserve remains more conservative and distanced from the digital asset industry. Their appointment would reduce market expectations of a rapid return to "cheap money" and limit the crypto sector’s hopes for a more accommodating regulatory environment.

A turning point for U.S. monetary policy

The change in Federal Reserve leadership will be one of the key factors shaping U.S. policy toward digital assets in 2025. The Trump administration has openly criticized Jerome Powell for what it sees as overly slow rate cuts and excessive caution in regulating emerging financial technologies. This is why the market expects the new Chair to be more aligned with the White House’s vision — more dovish in monetary policy and potentially more open to innovation.

For the crypto sector, this creates two very different trajectories. More liberal contenders could ease regulatory pressure, allow liquidity to return to risk assets more quickly, and create clearer rules for stablecoins and banking services connected to crypto. Conservative candidates, by contrast, would keep the framework largely unchanged, maintaining strict oversight and heightened caution shaped by the crises of recent years.

Until an official decision is made, the market is balancing between these scenarios. Investors are tracking not only the names of the contenders but also political signals from Washington — the expected timing of the announcement, White House comments, and the rhetoric of the Board of Governors. The appointment of the new Fed Chair will determine whether the crypto market in 2025 receives an additional boost or continues moving within a cautious regulatory regime.

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