Senate Confirms Warsh as Fed Governor, Bitcoin Reacts as Powell’s Term Ends

The vote came amid a tight partisan split, with only Democrat John Fetterman crossing party lines. Powell’s departure opens the chairmanship race, and the Senate banking committee is set to review the CLARITY bill, which aims to set clearer rules for stablecoins and other digital assets. These developments coincide as markets reassess how Fed leadership may influence crypto regulation and monetary policy.

Warsh’s confirmation passed 51‑45, securing his 14‑year term as governor and positioning him for a possible four‑year chairmanship vote later this week. Powell’s term as chairman concludes Friday, though he remains a governor until 2028. In recent remarks, Warsh said that without Bitcoin gold would likely appreciate more and that for investors under 40 Bitcoin functions as their new gold. Market reaction: Bitcoin (BTC) rose 2.3% to $27,800, lifting its market cap to roughly $540 billion; gold futures (GC=F) edged up 0.5% to $2,030 per ounce; the S&P 500 gained 0.2% to 5,320 points.

Warsh’s openness to Bitcoin signals a potential shift toward treating digital assets as a legitimate store of value, which could encourage the Fed to consider crypto‑friendly liquidity frameworks. If the CLARITY bill advances, clearer stablecoin rules may reduce regulatory uncertainty, attracting institutional capital that currently treats Bitcoin as a hedge against fiat depreciation. Conversely, any dovish tilt in monetary policy under a Warsh‑led Fed could boost risk‑on assets, amplifying Bitcoin’s price sensitivity to interest‑rate expectations.