Betting markets, specifically Polymarket and Kalshi, are currently leaning towards Kevin Hassett, who serves as the director of the National Economic Council under President Donald Trump, as the leading candidate for the next chair of the Federal Reserve, succeeding Jerome Powell. As of now, Polymarket shows Hassett’s odds of being appointed at 66% and Kalshi at 74%.

Hassett is known for his supportive stance on cryptocurrency, enhanced by his previous involvement with Coinbase’s advisory council and his significant financial stake in the platform. Moreover, he led a task force on digital assets during his tenure in the White House. Caitlin Long, a prominent figure in crypto advocacy and the CEO of Custodia Bank, shared her thoughts on X (formerly Twitter):

“If this comes true & Hassett does become Fed chairman, anti-#crypto people at the Fed who still hold positions of power will finally be out (well, most of them anyway). BIG changes will be coming to the Fed.”

Caitlin Long’s comment on the potential changes at the Fed

For more details, you can read the related article about Hassett’s candidacy and crypto-friendly policies here.

Hassett’s Background in Crypto

Kevin Hassett has a long-standing history as a Republican policy economist and advisor, recently returning to Washington as Trump’s chief economic strategist. His financial disclosures indicate he holds a significant investment in Coinbase, raising his profile as a potential Fed chair with a focus on crypto.

While there is enthusiasm about his candidacy within the crypto community, history shows that not all pro-crypto candidates translate that ideology into action, as seen in the case of Gary Gensler, who, despite his crypto credentials, oversaw strict enforcement actions as SEC chair.

Internal Fed Reactions

Hassett’s increasing odds come at a time when the Fed’s approach to bank oversight is facing criticism from some quarters, including from Michael Barr, a key architect of previous regulatory frameworks who is likely to resist Hassett’s proposed shifts in policy.

There are changes in the Fed’s supervisory principles, which aim to refocus regulatory oversight, potentially allowing for more engagement with emerging risks without compromising safety protocols. If prediction markets prove accurate, Hassett’s leadership could signal a transformative moment for the Fed and its approach to the rapidly growing digital asset landscape.