According to Juan Leon, senior investment strategist at Bitwise Invest, American economist Kevin Hassett becoming the new chair of the Federal Reserve would be "strongly bullish" for crypto.
First of all, Hassett is an aggressive "dove" who has publicly advocated for deeper, faster cuts.
Lower interest rates tend to make riskier assets of the likes of crypto more attractive since borrowing costs for buying it via leverage would decrease.
Hassett has experience coordinating federal policy on digital assets, previously leading a working group that was meant to shape cryptocurrency regulation.
Finally, he has also served on Coinbase's advisory board and owns a large stake in COIN.
Other top candidates
Hassett is an early frontrunner to replace Fed Chair Jerome Powell.
According to Polymarket bettors, Hassett currency has a 57% chance of being nominated as the next head of the most powerful central bank. However, he is still far from being a lock.
That said, the next Fed chair is unlikely to be announced as early as this year, according to Polymarket bettors.
Current Fed governor Christopher Waller is currently in second place with 22%. Waller is known for having rather hawkish views, which would not bode well for crypto.
Former Fed governor and former investment banker at Morgan Stanley, Kevin Warsh is also in the top 3. The Yale and Harvard-trained economist has a 15% chance of becoming the next chair.
A Fed Chair serves a four-year term once confirmed. Powell’s second term therefore, runs until February 2026.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team