Kevin Warsh, who was nominated by President Trump to chair the Federal Reserve, has revealed his ownership stake in Bitcoin payment startup Flashnet. The holdings are listed in financial disclosure documents filed ahead of Mr. Warsh’s Senate confirmation hearing, which could begin as early as this week, but more likely next week.
Flashnet is positioning itself as a lightning-style Bitcoin payment system for merchants and fintech platforms, as part of a broader effort to make transactions on the Bitcoin network faster and cheaper. While Warsh has publicly touted Bitcoin as an “important asset” and “a very good police officer of policy,” his stock directly ties the next Fed chief to companies whose fates depend on Bitcoin adoption and volume.
In past comments, he has argued that the price of Bitcoin could indicate that the Fed is behind the curve on inflation and monetary conditions.
The Fed chair oversees interest rate policy and the regulatory environment that shapes liquidity conditions for all risk assets, including cryptocurrencies. Warsh has been named the first openly pro-Bitcoin Fed chair by some in the industry, with supporters arguing that his familiarity with the asset class will help normalize the system rather than bias.
Warsh application for $100 million
Warsh disclosed other assets that could exceed $100 million in required ethics filings. His report lists large investments, including a more than $50 million stake in Juggernaut Funds LP, millions of dollars in consulting income from Stanley Druckenmiller’s firm, and numerous holdings in AI and other crypto ventures.
Mr. Warsh has promised to divest some opaque or potentially conflicting assets, which ethics officials said he will abide by. The filing advances the nomination of Jerome Powell’s successor, with a Senate confirmation hearing scheduled for next week.
The disclosure also included assets belonging to Warsh’s spouse, Jane Lauder, whose family is connected to Estée Lauder Companies. Forbes estimates her net worth to be around $1.9 billion. The amount of some of her municipal bond holdings was widely reported, with some listed simply as “more than $1 million.”
Mr. Warsh reported relatively small debts. These include a 2015 mortgage loan of up to $5 million at a 2.75% interest rate from JPMorgan Chase & Co., a revolving credit facility of up to $5 million at about 6% from PNC Bank, and a total capital commitment of $1.95 million to THSDFS LLC, one of the holdings he has committed to selling.
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The post Trump’s Fed pick Kevin Warsh reveals stake in Bitcoin Lightning startup Flashnet first appeared in Bitcoin Magazine and was written by Micah Zimmerman.
