Kevin Hassett as Fed Chair: Potential Big Boost for Crypto Markets
Kevin Hassett is a leading candidate for the next U.S. Federal Reserve chair. He has close ties to the crypto industry—previously holding significant Coinbase stock and serving on Coinbase’s academic and regulatory advisory committee. Markets expect Hassett to favor more aggressive rate cuts, which would lower borrowing costs and increase liquidity. A looser monetary policy typically supports risk assets, including Bitcoin (BTC). Under the GENIUS Act advanced in 2025, the Fed would assume primary regulatory oversight of stablecoin issuers; the Fed’s stance will influence whether stablecoins can scale and channel hundreds of billions into crypto markets. The Fed also controls banks’ access to crypto firms: the next chair’s attitude toward banking access and regulatory clearance is pivotal for institutional adoption. If Hassett becomes chair, his pro-crypto background and influence over interest rates and banking gates could speed crypto’s shift from niche to mainstream, reshaping liquidity, stablecoin expansion, and institutional integration.
Bullish
Hassett’s likely policy mix—pro-aggressive rate cuts and a friendly stance toward crypto—would be supportive for crypto prices and institutional participation. Lower interest rates reduce the opportunity cost of holding risk assets and can drive capital into Bitcoin and altcoins; market reaction to his candidacy (US Treasury yields falling) already signals expected liquidity improvement. The GENIUS Act placing stablecoin oversight with the Fed means the Fed chair’s view directly affects stablecoin scaling, which can mobilize large on-chain dollar liquidity into crypto markets. Greater bank access and regulatory clarity usually prompt institutional inflows and product development (custody, trading, ETFs, prime services), improving depth and reducing funding friction. Historically, dovish central bank moves and regulatory clarity have correlated with bullish crypto cycles (e.g., post-2020 liquidity surge and subsequent institutional adoption). Short-term: nomination news may spur immediate price gains and volatility as traders front-run policy expectations. Long-term: if enacted policies lower rates and enable stablecoin expansion plus broader banking access, this could sustain higher valuations and greater institutional market structure. Risks remain: actual policy implementation, political hurdles, or later rate reversals could reverse gains; regulatory gaps at other agencies (SEC, OCC) still matter. Overall, net effect is bullish but contingent on follow-through and coordinated regulation.