Kevin Hassett, who leads the White House National Economic Council, has become the frontrunner to replace Jerome Powell as the Federal Reserve chair. Both prediction markets and political analysts are increasingly backing his nomination. On the Kalshi exchange, traders now estimate a 54% chance that he will be chosen,
a jump attributed to reports
highlighting his support for President Donald Trump’s economic policies. Hassett’s preference for lower interest rates, which matches Trump’s advocacy for quicker rate reductions, has made him a central figure in discussions about the Fed’s future direction.
Experts point out
that with Hassett at the helm, the Fed may focus more on keeping borrowing costs down—a shift that could have wide-reaching effects on global financial markets, especially in areas like crypto and other risk assets.
Hassett’s reputation as a policymaker open to cryptocurrencies has fueled further debate about his possible influence. He holds more than $1 million in
Coinbase
shares and has been part of the company’s advisory council. He also led the White House’s digital asset working group
as reported
. These connections have caught the attention of crypto market participants, who interpret his potential appointment as a sign of a more favorable regulatory environment.
According to Juan Leon, a strategist at Bitwise,
Hassett’s dovish approach and positive stance on crypto could encourage greater institutional involvement and pave the way for clearer digital asset regulations. Still, some critics warn that his financial interests in the sector could present conflicts,
especially since the Fed plays a major role
in shaping crypto and stablecoin rules.
Under Powell, the Fed has already started cutting rates in 2025, but Trump’s dissatisfaction with the pace has intensified the search for a new chair. Treasury Secretary Scott Bessent, who is overseeing the process,
has reduced the list to five finalists
, with Hassett, Christopher Waller, and Kevin Warsh among the top picks. Trump’s desire for a dovish leader is clear from his repeated demands for rate cuts—a position Hassett has publicly supported. "
If I were Fed chair, I'd be cutting rates right now
," Hassett stated on Fox News, underscoring his alignment with Trump’s economic goals. This approach could keep U.S. interest rates low for an extended period,
which may increase liquidity
and benefit risk-oriented assets like
Bitcoin
, which has historically performed well during periods of loose monetary policy.
The potential impact on the crypto sector is twofold. First,
lower rates could make borrowing cheaper
for crypto businesses and DeFi platforms, improving margins and trading activity. Second, a Fed chair with direct industry experience might emphasize regulatory clarity over stricter controls, encouraging innovation.
Kyle Rodda from Capital.com observes
that Hassett’s selection could create a “more favorable climate for crypto,” though actual market effects will depend on economic data and global events.
As the decision process draws to a close,
investors are watching Bessent’s schedule
for any updates, with many anticipating a verdict before Christmas 2025. While Hassett remains a strong contender, the final decision will influence not only U.S. monetary policy but also the Fed’s approach to new technologies. For now, the combination of dovish monetary views and crypto-friendly experience has made Hassett a central figure as markets prepare for significant changes.