Trump Eyes Crypto-Friendly Fed Chair Pick - A Potential Game-Changer for Digital Assets

Washington's corridors of power are buzzing with speculation that could reshape the financial landscape. Former President Donald Trump is reportedly vetting candidates for Federal Reserve leadership who hold distinctly pro-cryptocurrency views—a move that would mark a seismic shift from the institution's traditionally cautious stance.

The Regulatory Crossroads

This isn't about minor policy tweaks. Installing a crypto-advocate at the helm of the world's most powerful central bank would signal a fundamental rethinking of monetary architecture. It suggests a future where digital asset frameworks are designed for growth, not just containment, potentially accelerating institutional adoption that's been stuck in regulatory limbo.

Markets on Watch

While no names are officially confirmed, the mere rumor is enough to send ripples—or waves—through trading desks. A Fed chair who speaks the language of DeFi and blockchain could dismantle barriers faster than any congressional bill, offering a clearer runway for everything from Bitcoin ETFs to tokenized real-world assets. Traders are already gaming out the implications for volatility and correlation with traditional markets.

The Institutional Domino Effect

Wall Street listens when the Fed talks. A supportive voice from the Marriner S. Eccles Building would provide the regulatory 'green light' major banks and asset managers have been waiting for. Expect a scramble to formalize custody solutions, trading desks, and product offerings that have been sitting in pilot phases, waiting for the fog of uncertainty to lift.

A cynical observer might note that after years of fighting crypto, the political establishment now sees it as the next frontier for influence-peddling and campaign donations. The final decision will reveal whether this is a genuine embrace of innovation or just the latest financial trend to be co-opted by Washington insiders.

President Donald TRUMP is considering Christopher Waller, a member of the Federal Reserve Board of Governors, as a potential candidate to replace the current Fed Chairman Jerome Powell. According to The Wall Street Journal, the interview is scheduled for Wednesday, and Waller stands out among the five candidates Trump is evaluating for this significant position.

Advocate for Cryptocurrency in the Fed

Appointed to the Fed leadership by Trump in 2020, Waller is recognized for his positive statements about the future of digital finance. He has argued that stablecoins and decentralized finance (DeFi) are new forms of private money that can coexist with traditional payment systems. His remarks at the Fed Payments Innovation Conference in October, stating that the DeFi industry should be seen as an opportunity rather than be met with skepticism, garnered considerable attention.

Waller’s past comments have resonated widely within the cryptocurrency community. Tom Lee, President of BitMine known for its ethereum treasury, stated that a new Fed chair, particularly one with a crypto-friendly stance like Waller, could lead to a more dovish central bank tone, possibly signifying a turning point for the cryptocurrency market.

Trump’s New Fed Strategy: Dovish Stance and Rapid Rate Cuts

There have long been publicized differences of opinion between Trump and the current Fed Chairman Powell. Powell has reduced rates consecutively at the last three Federal Open Market Committee (FOMC) meetings, bringing them down to the 3.50%–3.75% range. However, Trump deems these reductions insufficient, arguing that rates should fall below 1%.

Within the Fed, Waller is known as a strong advocate for rate cuts. The Wall Street Journal notes that Wall Street circles consider him a technocrat capable of producing logical and balanced arguments, along with managing internal differences. Nonetheless, his weak personal ties with Trump may present an obstacle compared to candidates like Kevin Hassett and Kevin Warsh. According to Polymarket data, Waller’s chances of appointment sit at 15%, whereas Hassett is favored with a 52% probability.

Secretary of the Treasury Scott Bessent announced that Trump’s final decision is expected to be revealed next month, while Powell’s current term is set to expire in May next year.