Hassett reveals million-dollar Coinbase holdings; could a crypto enthusiast be at the helm of the Federal Reserve?

Original author: Nicky, Foresight News

U.S. Treasury Secretary Bessant revealed on November 25 that the Federal Reserve Chair nominee has entered the final round of interviews, with the five candidates undergoing final evaluation this week, and President Trump "likely" to announce the results before Christmas.

Of the five candidates, Kevin Hassett, director of the White House National Economic Council, is currently the frontrunner. Data from the prediction market Polymarket shows that Hassett's probability of being elected has risen to 52%.

The market's reaction to Hassett's potential election is already evident. In late November, after Bloomberg reported that he was a leading candidate, the yield on the 10-year U.S. Treasury note fell below 4% (the first time in a month), reflecting investors' expectations that he would push for more aggressive interest rate cuts if he took office.

This economic advisor to Trump has significant ties to the cryptocurrency industry; he has not only publicly held millions of dollars worth of Coinbase stock, but also served as a member of the exchange's advisory board.

Economists who shuttle between the White House and think tanks

Hassett was born in Massachusetts. After earning his bachelor's degree in economics from Swarthmore College, he went on to earn his master's and doctoral degrees in economics from the University of Pennsylvania. He spent his early career in academia, teaching at Columbia Business School and New York University, and conducting research on macroeconomics and fiscal policy at the Federal Reserve Research Department.

From the late 1990s, he served as an economist at the American Enterprise Institute, researching topics including taxation, capital formation, and long-term growth. In the field of public policy, he provided economic advice to several Republican politicians, including McCain, Bush, and Romney.

Hassett's government career spanned two Trump terms. He served as Chairman of the Council of Economic Advisers from 2017 to 2019 and briefly returned to the White House as a senior advisor during the 2020 pandemic. Upon Trump's return to the White House in 2025, he appointed Hassett as Director of the National Economic Council, making him one of the most important economic policymakers in the current White House. During the Treasury Department's selection process for Federal Reserve Chair, he was considered the most aligned potential candidate with Trump's policy orientation.

Intersection with the crypto industry

While Hassett rarely speaks about stablecoins or payment system reform as frequently as some Federal Reserve officials, he has a public track record of interactions with the crypto industry. According to financial disclosures released by the U.S. Government Office of Ethics, he holds at least $1 million, and possibly as much as $5 million, of Coinbase stock. This stock comes from his compensation as a member of Coinbase's Academic and Regulatory Advisory Board, a board that also comprises several policymakers with prior government experience.

This experience suggests that Hassett did not merely observe the crypto industry from a regulatory perspective, but was directly involved in discussions regarding its governance and policy framework. Although publicly available information does not show that he holds Bitcoin or other on-chain assets, his shareholdings in related companies have led the market to generally view him as a relatively crypto-friendly policy figure.

He participated in the White House working group on digital asset policy, advocating for preserving space for innovation within the regulatory framework and believing that crypto technology is a crucial variable influencing the future economic structure. On a broader policy perspective, he has repeatedly advocated for a faster pace of interest rate cuts and argued that a loose monetary environment helps support economic growth. Such stances have historically been seen as favorable to risk assets, including cryptocurrencies.

Why the Federal Reserve Chairman is so important to the crypto industry

The Federal Reserve Chairman is the top decision-maker on US monetary policy, but his influence extends far beyond interest rates. With the GENIUS Act establishing a regulatory framework for stablecoins in 2025, the Federal Reserve and the banking regulatory system will be formally included as core supervisors of stablecoin issuance.

As the scale of "on-chain dollars" continues to expand, the relationship between stablecoin reserves and the US Treasury market will become closer. If the issuance of stablecoins increases, the demand for Treasury bonds may increase, thereby changing yields, liquidity, and the way the dollar system is used, which in turn will affect capital inflows into crypto assets.

Whether banks and non-bank financial institutions can participate in crypto or stablecoin businesses in compliance with regulations depends on the attitude of the Federal Reserve and relevant regulatory agencies. The degree of openness to the traditional financial system will determine whether the crypto industry maintains an "independent ecosystem" or fundamentally integrates into mainstream finance.

This means that every candidate for Federal Reserve Chair, regardless of whether they directly discuss crypto, will have a structural impact on the industry.