Crypto-Friendly Kevin Hassett Emerges as Top Candidate for Fed Chair Under Trump

Market Context

With creation of liquidity and interest-rate policy at the heart of macro conditions for risk assets, the identity of the next Fed chair is being watched closely by equity and crypto investors alike. In 2025, the lead candidate list — narrowed by Treasury Secretary Scott Bessent — includes Hassett alongside others. 

Crypto markets have shown sensitivity to rate expectations; a shift toward a more dovish monetary regime could stimulate renewed interest in high-beta assets such as cryptocurrency. A chair inclined to rate cuts or looser liquidity could shift sentiments in favour of digital assets.

Technical Details & Background

• Prior disclosures show Hassett holds a stake in a major U.S. crypto exchange — Coinbase — worth between US$1 million and US$5 million.
• Prediction / betting markets (e.g. Kalshi, Polymarket) have rapidly increased the probability assigned to Hassett becoming Fed chair — reflecting shifting market expectations and a perceived dovish tilt. 
• Analysts suggest a Fed under Hassett could lean toward earlier or deeper rate cuts — potentially boosting liquidity and risk-asset flows. That dynamic tends to favour volatile assets such as cryptocurrencies. 

Analyst Perspectives

• Many in the crypto sector view Hassett’s candidacy as a bullish sign: a Fed chair open to looser monetary policy could reinvigorate risk-taking, benefiting Bitcoin, Ethereum and other crypto assets. 
• From a broader macro-economic vantage, such a shift could ease financing conditions for growth assets — but might also raise concerns over fiscal-monetary coordination, inflation risks, or potential erosion of central-bank credibility. Some warn that a politically-aligned Fed could increase policy uncertainty long term.
• Others note that while expectations are shaping up now, actual impact depends on confirmation by the U.S. Senate, regulatory actions, and how swiftly the Fed pivots. Until then, much rests on “what-ifs.”

Global Impact Note

If Hassett is confirmed, the ripple effects could spread beyond the U.S. — affecting global liquidity conditions, capital flows, and risk-asset pricing. For crypto markets worldwide, a more dovish Fed could renew capital inflows from both institutional and retail investors seeking yield or speculative upside. In emerging markets and crypto-friendly jurisdictions, this could accelerate adoption, on-chain activity, and asset-class diversification. Conversely, increased volatility or inflation pressures may prompt tighter regulation or scrutiny in various regions.