Trump appoints Hassett to head The Federal Reserve (FED)! He holds $1 million in Bitcoin concept stocks.

Kevin Hassett, the chairman of the White House Council of Economic Advisers, has recently become the most popular candidate to be the next chairman of the Federal Reserve. Bloomberg cited several informed sources reporting that the Trump administration generally believes he best meets the president's expectations for “more aggressive rate cuts.” In June of this year, Hassett disclosed that he holds at least $1 million in Bitcoin-related stock COIN, raising discussions about the independence of the Central Bank and conflicts of interest due to his association with Bitcoin-related stocks.

Trump favors Hassett's stance on interest rate cuts as the biggest highlight

Hassett has publicly stated that based on the current data, he “would lower interest rates right now.” This strong stance has drawn attention as the debate over interest rate policy heats up. Trump has repeatedly criticized current Chairman Jerome Powell for “lowering rates too slowly” over the past year and has hinted that he has already decided on a successor. Hassett's dovish position on interest rates is highly aligned with Trump's policy preferences, which is a major reason he has become a leading candidate.

Treasury Secretary Scott Bessent is leading the selection process, which has narrowed down to five finalists, including Hassett, former Federal Reserve official Kevin Warsh, Federal Reserve Governor Christopher Waller, Deputy Supervisory Chair Michelle Bowman, and Rick Rieder, head of fixed income at BlackRock. Bessent stated that the related interviews are expected to conclude before Christmas, and the final nomination will be submitted for Senate review.

Comparison of Five Candidates for The Federal Reserve Chair

Kevin Hassett: Chairman of the White House Council of Economic Advisers, advocates for aggressive interest rate cuts, holds COIN stock.

Kevin Warsh: Former Federal Reserve official, took a hawkish stance during the 2008 financial crisis.

Christopher Waller: Current member of the Federal Reserve Board, an insider, with high policy continuity.

Michelle Bowman: Current Vice Chair of the Office of the Comptroller of the Currency, with extensive regulatory experience and a neutral to hawkish stance.

Rick Rieder: BlackRock's Fixed Income Chief, with extensive market experience but lacking a Central Bank background.

The Federal Reserve has cut interest rates twice this autumn, and there are still significant internal disagreements regarding the timing of the next rate cut. If the new chairperson is confirmed before the end of the year, it is widely expected that the direction of interest rates in early 2025 may change, further impacting inflation control, the job market, and the trend of financial funding costs. If Hassett's stance on rate cuts becomes the dominant policy, it could accelerate the U.S. into a more accommodative monetary environment.

Holding COIN stocks and the dominance of digital asset policies ignites controversy

Hassett is not only a core member of the White House economic team but also plays a key role in the development of digital asset policy. The White House “Digital Asset Market Working Group” he leads released regulatory recommendations during the summer, covering topics such as banking regulations, stablecoins, taxation, illicit fund flows, and “crypto reserves”. This report is one of the few concrete and directional policy documents in recent years. It is seen as the core framework for the Trump administration's promotion of cryptocurrency-friendly policies.

In June of this year, Hassett reported holding at least $1 million in shares of COIN, the largest compliant cryptocurrency exchange in the United States. The scale of his holdings immediately sparked discussions, especially since he served as a member of the academic and regulatory advisory committee of the largest compliant cryptocurrency exchange in the United States from late 2024 to early 2025. As one of the most representative Bitcoin concept stocks, the price trend of COIN is highly correlated with the cryptocurrency market, and COIN's business revenue directly benefits from the growth in cryptocurrency trading volume.

The committee members are mostly closely related to the Trump administration, including former SEC chairman Jay Clayton and former CIA legal advisor Courtney Elwood, which makes Hassett seen as a Central Bank candidate who can understand the language of the industry. The cryptocurrency industry largely holds a positive view of him, believing that a Federal Reserve chairman who understands blockchain technology and the operation of digital assets can formulate more reasonable regulatory policies.

However, some have questioned whether, if he were to become the chairman of the Federal Reserve (FED), his past connections with the industry would become a focal point of conflict of interest. The monetary policy decisions made by the chairman of the Federal Reserve (FED) directly affect market liquidity and the prices of risk assets. If the chairman personally holds COIN stocks and other Bitcoin-related stocks, will his policy decisions be influenced by personal financial interests? This skepticism has become even more sensitive after Trump attempted to replace board member Lisa Cook and became embroiled in litigation.

The stock price of the largest regulated cryptocurrency exchange in the United States has performed strongly this year, closely correlating with the price movements of Bitcoin. If the interest rate cut policy led by Hassert drives the cryptocurrency market up, COIN stock, as a Bitcoin concept stock, will directly benefit. This potential benefit relationship has sparked discussions about the independence of the Central Bank. Traditionally, the chairman of the Federal Reserve (FED) is required to avoid holding assets that could create conflicts of interest with monetary policy. If Hassert is nominated, he may need to sell or place his COIN stock in a trust to eliminate concerns.

Central Bank Independence and Trump's Policy Intervention Controversy

As the chairman selection enters its final stage, the market not only focuses on the interest rate path but also worries that the interaction between the executive branch and The Federal Reserve (FED) is heading towards higher tensions. Over the past year, Trump has not only criticized Powell for “lowering interest rates too slowly” but has also been embroiled in a lawsuit for attempting to replace board member Lisa Cook, bringing the issue of “central bank independence” back to the forefront.

The independence of the Central Bank is a cornerstone principle of modern monetary policy, aimed at ensuring that monetary policy decisions are based on economic data and professional judgment rather than political pressure. Since its establishment in 1913, the Federal Reserve (FED) has, although nominally subordinate to Congress, enjoyed a high degree of independence in its actual operations. The Chair of the Federal Reserve (FED) is nominated by the President, but once in office, their term is not subject to the President's will, and even if the President is dissatisfied with their policies, they cannot be directly dismissed.

However, Trump's frequent criticism of the Federal Reserve and attempts to interfere with personnel are challenging this tradition. He publicly criticized Powell's speed of interest rate cuts, hinted at a decision on a successor, and even attempted to replace uncooperative board members, actions that are seen as an erosion of the Central Bank's independence. If Hassett is nominated for “meeting presidential expectations,” it sends a dangerous signal: the choice of the Federal Reserve Chair is based on political loyalty to policy positions, rather than professional competence and independent judgment.

This kind of concern has triggered complex reactions in the financial markets. On one hand, the market generally welcomes a more aggressive interest rate cut policy, as this would lower the cost of capital and support stock prices and risk asset prices. On the other hand, if the decision to cut interest rates is perceived as being driven by political pressure rather than economic necessity, it could undermine the credibility of The Federal Reserve (FED), potentially increasing market uncertainty in the long term.

Expectations of Interest Rate Cuts and the Chain Reaction of Bitcoin Concept Stocks

If Hasset's stance on interest rate cuts becomes the dominant policy of the Federal Reserve, it will have a direct impact on Bitcoin concept stocks. Interest rate cuts typically lower the risk-free rate, increasing the relative attractiveness of risk assets. Bitcoin, as a high-risk high-return asset class, often performs well in a low-interest-rate environment. The improvement in this macroeconomic environment will directly drive up the valuation of Bitcoin concept stocks such as COIN.

The business revenue of the largest compliant cryptocurrency exchange in the United States mainly comes from trading fees. When the activity level of the cryptocurrency market increases, its revenue and profit will significantly grow. The liquidity easing brought by interest rate cuts usually drives speculative activities, increasing the trading volume of cryptocurrencies. In addition, the regulatory recommendations launched by the digital asset working group led by Hassett provide a clearer framework for stablecoins and banks participating in the cryptocurrency business, which will further expand the scope of COIN's business.

However, this conflict of interest is at the heart of the controversy. If the monetary policy decisions of the Chairman of the Federal Reserve can directly affect the value of Bitcoin-related stocks he personally holds, how can this conflict of interest be resolved? The traditional approach is to require officials to place their holdings in a blind trust or to divest completely, but Hassett has not yet stated how he will handle his COIN stock holdings.

Currently, Hasset remains silent, but under the influence of political momentum, policy positions, and market attention, he has stood at the center of the spotlight. As the final candidates are about to meet with senior White House officials, this critical personnel matter of “who will dominate U.S. monetary policy” is gradually approaching its reveal moment. Bitcoin concept stock investors are closely monitoring this personnel matter, as the new chairman's policy position will directly affect the funding costs and regulatory environment of the crypto market.