Fed Chair Warsh: Crypto On Its Own, No Bailouts

Fed Chair nominee Kevin Warsh publicly rejects the notion that the central bank would rescue crypto markets, saying the Fed should not be in the bailout business and would do what it can to mitigate risks without bailing out crypto. He emphasizes lessons from the 2008 crisis and asserts he would avoid commitments to rescue any sector, including crypto, even as he faces scrutiny over his personal crypto holdings. Warsh’s confirmation hearings have highlighted tensions with critics like Senator Elizabeth Warren, who question his leadership during crisis-era interventions such as the AIG bailout. During exchanges on monetary policy and political pressure, Warsh pledges to follow the law and data, and to keep politics out of Fed decisions. The discussion underscores a broader consensus among policymakers that the Fed should take a cautious, limited role in crypto crises rather than providing rescues or direct regulation of digital assets.