Kevin Warsh is one step away from the chair of the Federal Reserve. On Friday, April 24, 2026, Washington federal prosecutor Jeanine Pirro announced on X the closure of the criminal investigation into Jerome Powell and the U.S. central bank. The stated reason: the Fed's internal inspector general has taken over the review of billion-dollar cost overruns in the historic Washington headquarters renovation. With that, the last political obstacle blocking Warsh's Senate confirmation vote has been removed.
The Investigation That Froze the Confirmation
TL;DR: The DOJ has closed its criminal probe into Fed Chair Jerome Powell, clearing the path for Senate confirmation of Trump's nominee Kevin Warsh — a former Fed governor who holds over 30 crypto positions including Solana, dYdX, and Optimism.
The saga began in January 2026, when Powell publicly disclosed he had received notifications from Pirro's office. The Fed's historic building renovation — originally budgeted at approximately $1.4 billion — had ballooned to $2.5 billion. Trump visited the construction site over the summer, calling it "the taxpayers' Palace of Versailles." In March, a federal judge had already blocked Pirro's subpoenas, ruling there was "substantially zero evidence" of crimes committed by Powell. Pirro had nonetheless confirmed her intent to appeal — until Friday's reversal.
Sen. Tillis Removes His Hold — Vote Is Now Close
Republican Senator Thom Tillis of North Carolina — a member of the Senate Banking Committee — had made his vote for Warsh conditional on the investigation's closure. With the committee split 12 Republicans to 10 Democrats, every single vote is decisive. The confirmation hearing was held on April 21; Warsh stated that "digital assets are already part of the fabric of American financial industry," pledging to divest all his crypto holdings upon confirmation, as required by federal ethics rules.
Jerome Powell's term expires on May 15, 2026. The Senate confirmation vote could happen within days — unless Powell conditions his final departure from the board on what he previously called "transparency and finality" of the investigation.
The White House immediately declared itself "confident the Senate will swiftly confirm Kevin Warsh to restore competence and trust to the Fed." Senator Elizabeth Warren called the probe's closure "an attempt to install Trump's puppet at the Fed," but the committee math is not in her favor. Pirro left the door open to reopening the investigation "if the facts justified it," depending on the inspector general's findings.
Why This Matters for Crypto Markets
As detailed in our coverage of Warsh's 69-page financial disclosure and his candidate profile, a Fed chair with direct exposure to Solana, dYdX, and Lightning Network reshapes the regulatory landscape on four concrete fronts:
- Banking supervision of institutional digital asset custody
- Stablecoin regulation under the GENIUS Act currently before Congress
- Framework for tokenized deposits and tokenized securities on public blockchains
- CBDC stance: Warsh has already declared a U.S. CBDC "bad policy"
Federal ethics rules require Warsh to recuse himself for one year from any deliberation touching his former positions — but the strategic direction of a Fed led by someone who understands DeFi from the inside is unambiguous. The "Crypto Fed" era could begin within days.
Who is Kevin Warsh and why does he matter for crypto?
Kevin Warsh is Trump's nominee to chair the Federal Reserve. He holds over 30 crypto-linked positions including Solana, dYdX, Polymarket, and Optimism, making him the most crypto-exposed Fed chair candidate in U.S. history.
Why was there a DOJ investigation into Jerome Powell?
The DOJ, led by federal prosecutor Jeanine Pirro, investigated Powell over a Federal Reserve headquarters renovation that grew from $1.4 billion to $2.5 billion. A federal judge found "substantially zero evidence" of crimes in March 2026 before the probe was formally closed in April 2026.
When does Jerome Powell's term at the Fed end?
Jerome Powell's term as Federal Reserve Chair expires on May 15, 2026.
What is the GENIUS Act and why does it matter?
The GENIUS Act is a U.S. Congressional bill that would establish a regulatory framework for stablecoins. A Warsh-led Fed is expected to engage more constructively with stablecoin issuers than the Powell-era central bank.
