Will Crypto Explode If Kevin Hassett Takes Over The Fed In 2026?
Overview
Kevin Hassett, the current head of the White House National Economic Council, is being considered as a leading candidate for the next chair of the Federal Reserve. His potential appointment has sparked interest among crypto investors, who are speculating on the implications of a “Hassett Fed” for the cryptocurrency market.
What Happened?
Recent reports indicate that Kevin Hassett has emerged as the frontrunner for President Donald Trump’s choice to lead the Federal Reserve. He is viewed as aligning with Trump’s preference for lower interest rates. Hassett has previously served as an adviser to Coinbase and holds a significant amount of stock in the exchange.
Hassett’s possible role as Fed chair raises questions about how his macroeconomic views and experience in the cryptocurrency space could influence monetary policy. His advocacy for lower interest rates and his background in pro-crypto regulation are central to the bullish outlook among crypto investors.
The context of Hassett’s potential leadership also intertwines with Treasury Secretary Scott Bessent’s emerging vision for the Federal Reserve, which questions the existing operational framework. Bessent has expressed concerns about the current “ample reserves regime” and is advocating for a shift towards a more traditional approach to monetary policy.
Implications for the Crypto Market
- Bullish Sentiment: Investors are optimistic about Hassett’s potential to create a more favorable environment for cryptocurrencies due to his dovish stance on interest rates.
- Market Dynamics: A Hassett-led Fed that cuts rates quickly may support risk appetite, but it is uncertain if this will lead to the same liquidity conditions that benefited crypto in previous cycles.
- Political Considerations: Hassett’s rise is tied to political dynamics, as he is seen as a candidate who aligns with Trump’s economic goals and has been critical of the Fed’s current policies.
- Market Probabilities: The betting market indicates a growing consensus around Hassett’s candidacy, reflecting a shift from speculation to a more defined expectation.
- Balance Sheet Strategy: The interaction between Hassett’s rate cuts and Bessent’s approach to the Fed’s balance sheet will be crucial in determining the overall impact on the crypto market.
- Overall Market Cap: At the time of reporting, the total crypto market cap was noted, indicating the current scale of the market amidst these developments.
Updated: 11/27/2025, 7:24:55 AM
