Dove Hassett Leads Fed Chair Race, Boosting Crypto
Kevin Hassett has emerged as the frontrunner in the Fed Chair race, with Polymarket assigning him a 57% nomination probability. A self-described dove, Hassett advocates faster and deeper interest rate cuts, policies that typically lower borrowing costs and boost risk assets like crypto. He previously led a federal working group on cryptocurrency regulation and serves on Coinbase’s advisory board, holding a significant COIN stake. Other contenders include Fed Governor Christopher Waller, with a hawkish stance and a 22% chance, and former Governor Kevin Warsh, an early crypto investor and CBDC advocate at 15%. The new Federal Reserve Chair will start a four-year term in February 2026. Traders are closely watching this Fed Chair race for its potential impact on market liquidity, interest rates, and digital asset regulation.
Bullish
Hassett’s dovish stance and promise of rapid rate cuts tend to lower borrowing costs and increase liquidity, supporting risk assets like crypto in the short term. The nomination could boost market sentiment and trading volumes as investors anticipate looser monetary policy. In the long term, a Fed Chair focused on digital asset–friendly regulation may foster clearer rules and greater institutional adoption, further strengthening market stability and growth. However, competition among nominees and policy uncertainty could introduce volatility until the final decision is made.