Crypto Market Watches Kevin Hassett's Nomination as Fed Chair

Source: TokocryptoBlog Original Title: Crypto Market Watches Kevin Hassett’s Nomination as Fed Chair Original Link: Kevin Hassett, head of the White House National Economic Council, has emerged as the leading candidate for the next Fed Chair, sparking fresh speculation in the crypto market. According to reports, Hassett is now President Donald Trump’s top choice to lead the Fed in 2026, in line with Trump’s preference for lower interest rate policies.

Hassett previously served as an advisor to Coinbase and reportedly owns over US$1 million in shares of the company. His direct involvement in the digital asset industry, coupled with his known dovish stance, is drawing attention from crypto market participants.

Highlights Pro-Crypto Regulation

Bitwise senior investment strategist Juan Leon believes Hassett’s potential leadership at the Fed would have a bullish impact on digital assets. He describes Hassett as an “aggressive dove” who thinks current interest rates are too high and supports a faster pace of cuts. Leon also highlights Hassett’s role in the White House digital asset working group, which advocates for more pro-crypto regulation.

However, the Fed’s policy direction under Hassett cannot be separated from the influence of Treasury Secretary Scott Bessent. Bessent has openly questioned the post-crisis “ample reserves” framework and indicated the need to return to a pre-large-balance-sheet model. Felix Jauvin, host of Forward Guidance, summarized this approach as a combination of “dovish FFR, hawkish balance sheet,” stressing that this is not the same as the quantitative easing (QE) era of 2020–2021.

This scenario means that while rate cuts could support risk sentiment, the market cannot rely on the same liquidity surge as before. A looser macro environment than the tightening of 2022–2023 is still possible, but without guarantees of a broad-based rally across all risk assets.

A Trusted Figure for Trump

Macro analysts state that Hassett’s rise in the candidate pool is driven more by political factors. They note that Hassett stands out because he is trusted by Trump and has frequently criticized the Fed for being too slow and cautious.

On the prediction platform Polymarket, Hassett’s odds currently stand at around 53%, marking a shift from speculation to a more mature probability.

The potential impact on the crypto market will depend on three main factors: the speed at which the Fed cuts rates under Hassett, the extent to which Bessent pushes for simplification of the central bank’s balance sheet, and how the market assesses inflation and fiscal risks in the context of a more politicized Fed.

As of this report, total crypto market capitalization stands at US$2.96 trillion and remains above the 100-week EMA, indicating a positive long-term trend.