Senator Thom Tillis lifted his blockade of Kevin Warsh’s Federal Reserve nomination on April 27 after the Department of Justice dropped its criminal investigation into current Fed Chair Jerome Powell, clearing the path for a Senate Banking Committee vote on Wednesday.
Summary
- Tillis announced April 27 he would no longer block Warsh’s nomination after the DOJ closed its Powell investigation and redirected oversight to the Fed inspector general.
- The Senate Banking Committee is scheduled to vote on Warsh’s nomination Wednesday, with a full Senate vote expected before Powell’s term expires on May 15.
- Warsh’s confirmation would make him the most crypto-literate Fed chair in history, with prior venture investments across DeFi, stablecoins, Layer 1 networks, and prediction markets.
Warsh confirmation prospects cleared decisively on April 27 when Senator Thom Tillis told NBC’s Meet the Press that he is “prepared to move on with the confirmation of Mr. Warsh” after the Department of Justice dropped its criminal investigation into Fed Chair Jerome Powell over alleged cost overruns on the Fed’s headquarters renovation. The Senate Banking Committee confirmed it will vote on Warsh’s nomination on Wednesday, with a full Senate floor vote expected to follow before Powell’s term expires on May 15.
Warsh Confirmation Clears Its Last Major Obstacle
Tillis had blocked Warsh since January, arguing that the DOJ investigation of Powell was a “bogus and vindictive prosecution” that threatened the Fed’s independence. The block was enough to deadlock the 13-to-11 Republican-majority Banking Committee, as even one Republican defection would have stalled Warsh’s path forward. On Friday, US Attorney for DC Jeanine Pirro announced her office was closing the investigation and handing oversight of the Fed renovation project to the Fed’s inspector general, who had already been conducting a review since last July. CNBC reported that Tillis received assurances from DOJ officials that the probe was “completely and fully ended” and that any future investigation would require a criminal referral from the inspector general, not an executive-branch decision. “I needed to feel like they were not using DOJ as a weapon to threaten the independence of the Fed,” Tillis said. As crypto.news reported, Warsh had already pledged at his April 21 confirmation hearing that he would act as “an independent actor” and had made no commitments to the White House on interest rate decisions.
Why Warsh’s Confirmation Matters for Crypto Markets
Warsh is positioned to become the most crypto-literate Fed chair in the institution’s history. As crypto.news documented, his financial disclosures revealed indirect stakes across DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure through venture fund structures. He has publicly described Bitcoin as having a positive disciplinary effect on economic policy and told senators at his April 21 hearing that “digital assets are already part of the fabric of our financial services industry.” As crypto.news tracked, Bitcoin climbed approximately 10% to trade near $78,000 in recent weeks as the Warsh confirmation odds improved, with analysts describing him as the most constructive possible outcome for crypto from a Fed chair appointment. Polymarket confirmation odds had fallen to 28% while Tillis held his block, but are expected to surge sharply following Sunday’s announcement.
The Race Against Powell’s May 15 Deadline
The timeline is compressed. Powell’s term as chair expires on May 15, and the Senate historically has rarely confirmed a Fed chair nominee in less than three weeks. The Banking Committee vote on Wednesday must be followed by a full Senate floor vote, and Democratic opposition remains unified. Senator Elizabeth Warren called Warsh a “sock puppet” and said no Republican claiming to care about Fed independence should support moving the nomination forward. As crypto.news noted, the FOMC is also scheduled to meet on Wednesday, with markets expecting rates to remain unchanged for the third consecutive meeting. If Warsh is not confirmed before May 15, Powell has indicated he plans to remain in place as a voting member of the Fed’s board until January 2028, providing continuity even if the confirmation timeline slips.
Acting Attorney General Todd Blanche confirmed Sunday that the investigation is now in the hands of the Fed inspector general and that the DOJ would only reopen a probe if the IG uncovered evidence of criminal conduct and made a formal referral.
