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

Gate News message, April 24 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a major 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 via social media, stating that the investigation—which centered on allegations of false statements regarding the renovation of the Federal Reserve’s headquarters—would be terminated.

The timing comes shortly after Warsh testified before the Senate Banking Committee during his nomination hearing. Warsh, who holds dozens of cryptocurrency investments including positions in dYdX and Dapper Labs, signaled a more receptive stance toward digital assets. When questioned about whether cryptocurrencies were integrated into the U.S. financial industry, Warsh affirmed that they were “already part of the fabric of our financial services industry in the United States.”

The DOJ’s decision addresses a critical hurdle: Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee whose vote is essential for Warsh’s confirmation, had previously stated he could not support the nomination until the investigation ended. During the hearing, Tillis expressed support for Warsh personally but made his vote contingent on the probe’s closure.

Analysts have suggested that clearing Warsh’s nomination could accelerate progress on comprehensive crypto market legislation. The Clarity Act, which has stalled in the Senate Banking Committee for the past year, could advance once Warsh is confirmed. Grayscale Head of Research Zach Pandl noted on social media that the committee could proceed with a markup of the Clarity Act following Warsh’s confirmation.