The U.S. Senate confirmed Kevin Warsh to the Federal Reserve Board of Governors in a 51-45 vote on Tuesday, advancing his path to replace Jerome Powell as chair of the central bank. Warsh, a former Morgan Stanley banker, is known for his ties to the cryptocurrency industry; his financial disclosures revealed investments in blockchain, DeFi, crypto payments, and tokenized networks through venture funds. He has pledged to divest most of these holdings if confirmed as chair. The confirmation vote for the chair role is expected on Wednesday. Warsh's potential leadership comes amid inflation concerns tied to the Iran war and rising energy prices, and as the Fed deliberates stablecoin regulation, crypto custody rules, and digital payment research. His crypto familiarity may influence policy direction.

Key facts

• Warsh confirmed to Fed Board in 51-45 Senate vote.
• Expected to win separate vote to become Fed chair on Wednesday.
• His financial disclosures show crypto and blockchain investments.
• Pledged to divest most crypto holdings if confirmed as chair.
• Fed faces inflation and digital asset policy decisions under new leadership.