Crypto Investors Watch Closely as Kevin Hassett Becomes Frontrunner to Replace Jerome Powell

Kevin Hassett has surged ahead in the race to become the next Federal Reserve Chair, as the crypto market watches closely. Hasset emerged as President Donald Trump’s preferred candidate while the administration accelerates its search ahead of a planned Christmas announcement.

With Jerome Powell’s term ending in May 2026, the stakes for markets, especially crypto, are enormous.

Hassett Leads the Pack as Trump Eyes Aggressive Rate Cuts

Multiple reports from Bloomberg, Reuters, and other outlets confirm that Hassett, the current director of the White House National Economic Council, has become the clear frontrunner among five finalists vetted by Treasury Secretary Scott Bessent.

Others still in contention include Kevin Warsh, Christopher Waller, Michelle Bowman and BlackRock executive Rick Rieder. But it is Hassett’s alignment with Trump’s preference for faster and deeper interest-rate cuts that has put him in pole position.

In recent interviews, Hassett said he would cut rates “right now” based on current economic data, a sharp contrast to Powell’s more cautious approach. Prediction platforms like Kalshi and Polymarket now show Hassett with roughly 55%–57% odds of being nominated, well ahead of his rivals.

Crypto Ties Raise Questions, and Fuel Market Optimism

Hassett’s candidacy is drawing extraordinary attention from the digital asset world. Earlier this year, he disclosed holding more than $1 million in Coinbase stock, along with receiving over $50,000 for serving on Coinbase’s Academic and Regulatory Advisory Council.

He also chaired the White House’s digital asset working group, crafting key crypto-policy recommendations, including stablecoin regulation, taxation guidelines and elements of the administration’s Strategic Bitcoin Reserve proposal.

These ties have sparked questions about potential conflicts of interest, given the Fed’s oversight of banking exposure to crypto and stablecoin frameworks.

Yet many industry analysts view his ascent as a major bullish catalyst. Bitwise strategist Juan Leon said a Hassett-led Fed would be “strongly supportive of digital assets,” citing his dovish monetary stance and direct industry experience.

Markets Brace for a Potentially Transformative Fed Shift

Trump’s dissatisfaction with Powell, combined with internal divisions over inflation, labor data and the pace of easing, has only intensified speculation. The Fed has already delivered two cuts this fall, with markets widely expecting a third in December.

If nominated and confirmed, Hassett would usher in one of the most crypto-friendly and pro-growth Federal Reserve leaderships in modern history.

With the announcement expected before Christmas, both Wall Street and the crypto markets are watching closely for what could be a defining moment for monetary policy and digital asset regulation.

Cover image from ChatGPT, BTCUSD chart from Tradingview