DOJ Drops Criminal Probe into Powell, Clearing Path for Crypto-Friendly Warsh as Fed Chair

Gate News message, April 26 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to Senate confirmation of incoming Fed chair Kevin Warsh. U.S. Attorney for the District of Columbia Jeanine Pirro announced the decision on Friday (April 25), ending the probe that was initiated earlier this year over allegations of false statements regarding the renovation of the Federal Reserve's headquarters.

The timing comes just days after Warsh testified before the Senate Banking Committee during his nomination hearing. Warsh, who holds numerous crypto investments including positions in dYdX and Dapper Labs, signaled a pro-digital asset stance, stating that cryptocurrencies are "already part of the fabric of our financial services industry in the United States" when asked about their role in finance.

Senator Thom Tillis, R-N.C., a member of the Senate Banking Committee whose vote is crucial for Warsh's confirmation, had previously stated he could not support the nomination while the investigation remained open. The DOJ's decision to drop the probe removes this voting condition.

Observers suggest the development could accelerate movement on the Clarity Act, a broad crypto market regulation bill that has stalled in the Senate Banking Committee. Grayscale Head of Research Zach Pandl posted on X that the committee could advance a markup for the Clarity Act once Warsh's confirmation is finalized.