Fed Chair frontrunner Warsh: No CBDC on his watch — and rate cuts may follow!

Kevin Warsh, Donald Trump's preferred pick to lead the Federal Reserve, told his Senate confirmation hearing that the Fed has no legal right to issue a central bank digital currency — and that he would not pursue one under his chairmanship. The stance is a direct win for private-sector stablecoin issuers: if the government is out of the digital-currency business, Circle, Tether, and the chains they run on stand to capture that demand.

Ethereum and Solana are the primary settlement layers for dollar-denominated stablecoins, making both networks structural beneficiaries if Warsh's position holds. A Fed that refuses to compete with private issuers is effectively a policy tailwind for on-chain dollar infrastructure.

On rates, Warsh signalled preference for using interest rates as the dominant monetary tool over bond-buying programmes, while declining to repeat Trump's public push for the…