Crypto: Kevin Hassett could become the next boss of the Fed

In an economic landscape weakened by persistent inflation and markets still under pressure, the succession at the head of the Federal Reserve is becoming a highly strategic issue. The rise of Kevin Hassett, former economic advisor to Donald Trump and close to the crypto universe, is reshuffling the cards. At the intersection of classic monetary policy and financial innovations, his candidacy intrigues, divides and could well mark a major inflection in relations between Washington and the crypto industry.

A serious contender for the Fed with an assumed crypto past

While the institution must make a decisive choice in December, the name of Kevin Hassett has come up insistently in recent days in the race for president of the American Federal Reserve.

Former director of the National Economic Council, Hassett, according to agency sources, has a central role in the White House working group on cryptos. This group published a report during the summer containing a series of recommendations on the regulation of the crypto sector, particularly around stablecoins, taxation, risks linked to money laundering and the integration of cryptos into the traditional banking system.

This direct link with regulatory work on these assets clearly distinguishes Kevin Hassett from other candidates. Added to this is a notable personal involvement in the crypto ecosystem. In June 2024, he reported holding a stake in Coinbase Global Inc., worth at least $1 million. This dual exposure, technical and financial, underlines Hassett's alignment with certain market dynamics.

Here is the main elements which emerge from his involvement in the sector:

• He participated in the development of the crypto working group report;

• This report addressed key themes such as stablecoins, taxation, financial crime, banking infrastructure linked to cryptos and the creation of a strategic reserve;

• His asset declaration lists a significant position in Coinbase (COIN), making him one of the few public officials to personally invest in a listed crypto company;

• His profile contrasts with that of traditional candidates for the Fed, generally distant from the crypto sector.

A Trump ally in a highly strategic race

The potential appointment of Kevin Hassett is not only based on his economic expertise. He is also seen as close to President Donald Trump, who would be a trusted ally and someone he has faith in.

This political factor could weigh heavily in the balance while Trump has not yet announced his final decision. Asked about the subject, White House spokesperson Karoline Leavitt tempered speculation. She has declared : “No one really knows what President Trump will do until he does it. Stay tuned! ».

At the same time, other names are circulating, such as those of Fed Governor Christopher Waller, former official Kevin Warsh, Vice-President Michelle Bowman and even Rick Rieder, investment director at BlackRock.

However, Hassett seems to be making his mark in a context where Donald Trump openly criticizes the Fed's current policy. He has repeatedly expressed his dissatisfaction with Jerome Powell. The American president campaigned for a reduction in interest rates, a desire which opposes the current strategy of monetary tightening carried out to curb inflation.

In an already tense climate, Powell accused Trump of wanting to politicize the Fed, amplifying the divisions around his succession. If Hassett is appointed, this dynamic could accelerate a strategic repositioning of the institution, with direct repercussions on the financial markets and the crypto ecosystem.