Kevin Hassett Emerges as Frontrunner for Fed Chair, Crypto Markets on Alert

Kevin Hassett has surged ahead as the leading candidate to replace Jerome Powell as Federal Reserve Chair, with the crypto market closely monitoring developments. Hassett, currently director of the White House National Economic Council, has become President Donald Trump's preferred choice as the administration accelerates its search for Powell's successor. Powell's term ends in May 2026, making this a pivotal moment for financial markets, particularly digital assets.

Hassett's alignment with Trump's push for aggressive rate cuts has positioned him ahead of other finalists, including Kevin Warsh and BlackRock's Rick Rieder. Prediction markets now give Hassett 55%-57% odds of nomination, reflecting his stark contrast to Powell's cautious stance. "I would cut rates right now," Hassett recently stated, signaling a potential shift in monetary policy that could impact crypto volatility.

The digital asset industry is paying unusual attention to Hassett's candidacy due to his past engagements with cryptocurrency projects. While details remain scarce, market participants anticipate his potential nomination could bring greater regulatory clarity—or disruption—to the space. Bitcoin and Ethereum options markets show heightened activity around May 2026 expiration dates, suggesting traders are already positioning for Fed leadership transition risks.