Federal Reserve (FED) · Kevin Warsh · White House · Bitcoin · Bitcoin Magazine
Federal Reserve Chair Kevin Warsh confirmed the Fed will not bail out failing crypto firms
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
Federal Reserve Chair Kevin Warsh told the House Financial Services Committee on July 14 that the central bank will decline to rescue the cryptocurrency industry in a crisis, a message he delivered during his first semiannual monetary policy testimony as chair.
Key facts
- Federal Reserve Chair Kevin Warsh told the House Financial Services Committee on July 14 that the central bank will decline to rescue the cryptocurrency industry in a crisis, a message he delivered
- As a Fed governor under Chairman Ben Bernanke, he helped design the 2008 rescue effort
- Brad Sherman (D-CA), a longtime crypto skeptic, who asked whether the Fed would backstop failing digital-asset firms the way it supported money market funds in 2008
- Warsh, who took office May 15 and presided over his first FOMC meeting in June, framed the stance through his own history
Summary
Federal Reserve Chair Kevin Warsh said the Fed will not bail out failing crypto firms, insisting the industry must bear its own risks while regulators finalize rules under the GENIUS Act. The exchange came from Rep. Brad Sherman (D-CA), a longtime crypto skeptic, who asked whether the Fed would backstop failing digital-asset firms the way it supported money market funds in 2008. Warsh, who took office May 15 and presided over his first FOMC meeting in June, framed the stance through his own history. As a Fed governor under Chairman Ben Bernanke, he helped design the 2008 rescue effort.