DOJ Drops Criminal Investigation Into Fed Chair Powell, Clearing Path for Crypto-Friendly Warsh's Confirmation

Gate News message, April 25 — The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to Senate confirmation of Kevin Warsh as the incoming Fed chair. On Friday (April 24), U.S. Attorney for the District of Columbia Jeanine Pirro announced the closure of the investigation, which had been initiated earlier this year over allegations of false statements regarding renovations to the Federal Reserve's headquarters.

Warsh, who holds dozens of crypto investments including stakes in dYdX and Dapper Labs, testified before the Senate Banking Committee during his nomination hearing just days before the DOJ's announcement. When questioned about digital assets' role in the financial industry, Warsh stated that cryptocurrencies were "already part of the fabric of our financial services industry in the United States," signaling a more crypto-friendly stance at the central bank.

The timing is significant for Sen. Thom Tillis (R-N.C.), a key member of the Senate Banking Committee whose vote is essential for Warsh's confirmation. During the hearing, Tillis had called for the investigation's closure and indicated he could not support Warsh's nomination until the probe was dropped. Industry observers suggest that clearing Warsh's confirmation could accelerate action on pending crypto legislation, including the Clarity Act, which has been stalled in the committee for over a year.