As the selection for the next Federal Reserve Chair intensifies, Kevin Hassett has emerged as a significant contender, capturing the attention of financial markets, particularly the cryptocurrency sector. With President Trump backing him, the financial landscape awaits his nomination ahead of a projected announcement this holiday season.
The conclusion of Jerome Powell’s term in May 2026 adds a layer of complexity to the situation. Market participants, particularly those in crypto, are eagerly observing the potential implications for their investments.
Hassett Gains Momentum Amid Calls for Rate Reductions
Reports from various media outlets, including Bloomberg and Reuters, suggest that Hassett, who currently serves as the head of the White House National Economic Council, stands as a leading candidate among several others vetted by Treasury Secretary Scott Bessent.
The competition includes notable figures such as Kevin Warsh, Christopher Waller, Michelle Bowman, and BlackRock executive Rick Rieder. However, it is Hassett’s strong alignment with Trump’s vision for rapid and substantial interest-rate cuts that distinguishes him from the pack.
In his recent statements, Hassett indicated an openness to immediate rate reductions based on current economic indicators, contrasting sharply with Powell’s more cautious stance. Betting markets like Kalshi and Polymarket currently assign Hassett around 55%–57% likelihood for nomination, significantly ahead of his competitors.
Connections to Crypto Spark Interest and Speculation
Hassett’s ties to the cryptocurrency industry are eliciting considerable interest from digital asset investors. He disclosed a holding of over $1 million in Coinbase stock and reports earnings exceeding $50,000 for his role on Coinbase’s Academic and Regulatory Advisory Council.
Additionally, he previously chaired the White House’s digital asset working group, where he contributed to shaping essential policy recommendations, such as those regarding stablecoin regulation and taxes, and elements of a Strategic Bitcoin Reserve.
These affiliations raise questions about potential conflicts of interest as the Fed regulates banks’ exposure to cryptocurrencies and oversees stablecoin initiatives. However, many analysts believe that his leadership could catalyze significant positive momentum in the crypto markets.
According to Bitwise strategist Juan Leon, a Hassett-led Federal Reserve would likely adopt a supportive stance toward digital assets, drawing from his dovish monetary policy approach and relevant industry experience.
Market Anticipation for a Major Fed Transition
Trump’s discontent with Powell, coupled with existing divisions regarding inflation and economic indicators, has heightened speculation surrounding the nomination. Following two rate cuts this past fall, a third is anticipated in December.
Should he be nominated and confirmed, Hassett may usher in a transformative era for the Federal Reserve, characterized by a pro-crypto and growth-centric agenda.
With an announcement likely before Christmas, financial markets, especially in crypto, are poised for what could be a pivotal moment in the realm of monetary policy and digital asset regulation.
Image from ChatGPT, BTCUSD chart sourced from Tradingview
