Markets Brace as Hassett Emerges as Crypto-Linked Fed Pick
- Kevin Hassett emerges as Trump’s top Fed pick, raising questions about crypto exposure.
- A crypto-aligned Fed chair could shift regulatory power across Treasury, SEC, and banking.
- Hassett’s stance on rapid rate cuts raises concern over future Fed independence and policy.
White House National Economic Council Director Kevin Hassett has emerged as Donald Trump’s leading choice for Federal Reserve chair, triggering new questions about crypto exposure and political influence over U.S. monetary policy. Advisers close to the process say Trump wants a chair who supports aggressive rate cuts and aligns with his broader economic agenda.
A Fed Pick With Direct Crypto-Market Ties
Hassett’s rise has drawn attention because analysts have linked him to major Coinbase holdings. That link has introduced a new debate about how a crypto-aligned candidate might reshape the balance between federal regulators and digital-asset markets. Researchers say the possibility marks a rare moment when a potential Fed chair could hold direct exposure to an industry shaped by the central bank.
Trump’s allies describe Hassett as a trusted figure who shares the president’s view that interest rates must fall faster. Hassett said he would be cutting rates “right now” because recent data support an easier policy stance. His comments signaled firm agreement with Trump’s longstanding push for cheaper borrowing costs.
However, this alignment has raised broader questions. Analysts say the choice could intensify pressure on the Fed’s independence, especially as Trump continues criticizing the institution. Trump has repeatedly challenged Fed leadership and even explored firing Jerome Powell.
Despite that tension, advisers say the final selection process remains fluid. Trump often changes course late in major personnel decisions, and several candidates remain under review. Treasury Secretary Scott Bessent is leading the interviews and plans to finish the final round soon.
Monetary Policy Meets Crypto Politics
Hassett’s potential appointment arrives during a wider shift in Washington’s approach to financial power. The Treasury has pushed for broader liquidity authority in recent months. Meanwhile, debates over the regulatory future of stablecoins and crypto exchanges continue to intensify across federal agencies.
Analysts say a Fed chair with direct crypto exposure could influence these debates. They point to the growing regulatory overlap between the Fed, the Treasury, and the SEC. A crypto-friendly chair could tilt internal power toward looser rules for digital assets or greater support for banking-based token infrastructure.
This convergence mirrors earlier periods in the crypto market’s evolution. Between 2017 and 2020, institutional players entered spot markets after years of hesitation. Researchers say prediction markets, liquidity venues, and stablecoin issuers followed similar adoption paths. Today’s shift appears to be focused on policy influence rather than on trading flows.
Treasury officials now face the challenge of presenting a candidate who satisfies Trump’s desire for aggressive rate cuts while also maintaining market stability. Bond markets reacted quickly to Hassett’s rise, sending the 10-year Treasury yield below 4% for the first time in a month.
Hassett has described himself as ready to serve if asked. He said that he wants to support the president and the country, but acknowledged that the final outcome remains uncertain.
Related: Fed December Cut Odds Fade as Officials Signal Firm Resolve
A Tight Timeline and Intensifying Scrutiny
The selection process is moving quickly. Bessent plans for Trump to announce a choice before December 25. Trump has said he already knows his preferred candidate but has not shared the name. Hassett, former Fed official Kevin Warsh, Governor Christopher Waller, Vice Chair Michelle Bowman, and BlackRock’s Rick Rieder remain the top contenders.
The group of finalists will meet with senior White House officials, including Chief of Staff Susie Wiles and Vice President JD Vance. Senate confirmation will follow after Trump makes his final pick.
As the decision approaches, analysts say the core question remains whether a crypto-aligned chair would alter America’s monetary direction. Hassett’s emergence has fused the debates around interest-rate policy, regulatory power, and the future of digital-asset oversight. This mix has heightened expectations across markets that the next Fed leader may redefine the boundaries between political influence, monetary independence, and the crypto economy.
