Kevin Hassett stands as a frontrunner for the Federal Reserve Chair under Trump, yet his ties to Coinbase are sparking debate concerning potential conflicts of interest.
Hassett, a trusted figure of Trump who favors lower interest rates, has emerged as the leading candidate for the Fed Chair as Powell’s term approaches its end.
Hassett’s holding of over \$1 million in Coinbase stock and his prior involvement with its advisory board raise potential conflicts of interest concerns.
Other candidates were included in the Treasury Department’s review; Trump is likely to announce his selection before Christmas, followed by Senate confirmation.
Kevin Hassett has become the top contender for the Federal Reserve Chair within President Donald Trump’s selection process, according to a Bloomberg report released Tuesday.
The White House National Economic Council Director holds the leading position as Trump nears a decision on the central bank’s next head, Bloomberg detailed, citing individuals familiar with the matter. Trump’s advisors and allies characterize Hassett as a long-time confidant whom the President trusts on interest rate policy and believes will push for quicker rate cuts than the current Chair, Jerome Powell, the report notes.
Hassett as Fed Chair Could Bring Digital Assets to the Forefront
Hassett has indicated a willingness to succeed Powell should he be chosen, as reported by Bloomberg. Sources privy to internal discussions suggested that Trump seeks a Chair more aligned with his preference for reducing borrowing costs to bolster economic expansion and markets, including digital assets.
The selection process is ongoing. Treasury Secretary Steven Mnuchin conducted a structured vetting process starting in the summer, recently concluding a second round of interviews with Hassett and other contenders, including former Fed head Kevin Warsh, sitting governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder, according to accounts.
Mnuchin stated this week there is a “very good probability” Trump will announce his pick prior to Christmas, though the timing is dependent on the President and could stretch into early 2026.
Powell’s term as Fed Chair concludes on May 15, 2026. He could remain a governor until January 2028 if he is not re-nominated as Chair. The White House is expected to name a successor and seek Senate approval in advance to ensure a smooth transition.
Hassett disclosed earlier this year that he held over \$1 million in Coinbase shares, per a financial disclosure cited by Bloomberg. The document indicated the Coinbase stake was valued between \$1 million and \$5 million in acquired stock, with total assets worth at least \$7.6 million. A draft document filed with the Office of Government Ethics also showed Hassett received a salary of \$50,001 from Coinbase for his role on the Academic and Regulatory Advisory Board, Bloomberg noted.
The board included other individuals connected to the Trump administration, such as former SEC Chair Jay Clayton and former CIA General Counsel Courtney Elwood.
These revealed financial connections have prompted discussions in Washington and among market participants regarding potential conflicts of interest, given the Federal Reserve’s role in considering stablecoin regulation, digital asset banking risks, and a potential digital dollar.
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