Kevin Warsh’s Nomination and Background
Kevin Warsh, who has been selected by President Donald Trump to lead the Federal Reserve, has a significant history with Anchorage Digital, a firm closely associated with Tether’s attempts to establish a regulated presence in the United States. Prior to his nomination on Friday, Warsh had been an advisor at Anchorage Digital for several years; however, he was removed from their advisory list shortly after mid-January, as indicated by records from the Internet Archive.
Anchorage Digital and Tether’s USAT
Nathan McCauley, Co-Founder and CEO of Anchorage Digital, expressed his enthusiasm on social media regarding Warsh’s nomination, highlighting his long-term advisory role within the company. Anchorage Digital is known for issuing Tether’s latest product, USAT. Launched just last week, USAT represents Tether’s commitment to meeting U.S. regulations on stablecoins, which were enacted this summer; Tether CEO Paolo Ardoino emphasized that the stablecoin is “made in America.”
If Warsh had maintained his advisory position with Anchorage, it could create a connection to Commerce Secretary Howard Lutnick, who formerly led Cantor Fitzgerald—the investment bank responsible for managing some of Tether’s USDT reserves. An Anchorage spokesperson acknowledged Warsh’s contributions to the company and expressed confidence in his candidacy during the Senate confirmation process.
Cantor Fitzgerald’s Role and Regulatory Compliance
Cantor Fitzgerald has long been recognized for its role in managing assets backing Tether’s $185 billion stablecoin, but recent statements suggest the firm will also act as the reserve custodian for USAT and will serve as its preferred primary dealer. While Tether’s flagship stablecoin relies on a diverse asset base—including Bitcoin and gold, which do not comply with the latest U.S. stablecoin regulations—Tether maintains that USAT will conform to regulatory standards by partnering with a bank that Warsh has previously engaged with professionally.
Concerns Over Federal Reserve Independence
As Warsh steps into the spotlight, concerns about the Federal Reserve’s independence under Trump’s presidency have heightened. The former president has vocally urged current Federal Reserve Chair Jerome Powell to reduce interest rates, and this pressure escalated following the recent news of a Department of Justice criminal inquiry involving Powell.
Anchorage Digital’s Historic Role
Established in 2017, Anchorage Digital made history by becoming the first cryptocurrency bank in the U.S. to receive a federal charter, thereby acting as a regulated intermediary for traditional banking and digital assets. In May, it was reported that Lutnick had completed a significant divestiture of his Cantor Fitzgerald interests to adhere to ethical standards set by the government, transferring ownership to trusts for his children.
Outlook on Warsh’s Confirmation
While Cantor Fitzgerald declined to comment on these developments, Trump projected optimism regarding Warsh’s Senate confirmation, suggesting that his standing as a “high-quality person” could garner bipartisan support and facilitate a smooth confirmation process.
