Will Crypto Explode If Kevin Hassett Takes Over | Crypto News
Kevin Hassett, head of the White House National Economic Council, has abruptly turn out to be the market’s base case for the next Fed chair – and crypto traders are already gaming out what a “Hassett Fed” would imply. According to Bloomberg-sourced reporting, Hassett has “emerged as the frontrunner” for President Donald Trump’s alternative to lead the Federal Reserve, seen as the candidate most aligned with Trump’s desire for decrease rates of interest. Earlier disclosures confirmed Hassett beforehand served as an adviser to Coinbase and holds at least $1 million in Coinbase stock.
How Will Hassett Impact The Crypto Market?
For crypto allocators, that mixture of macro dovishness and direct publicity to a major US exchange is the core of the bull case. Bitwise senior investment strategist Juan Leon put it bluntly on X: “If Kevin Hassett becomes Fed Chair, the implications for crypto are strongly bullish.” He calls Hassett an “aggressive ‘dove’ who has publicly criticized current rates for being too high and advocated for deeper, faster cuts,” highlighting that he “served on Coinbase’s advisory board and owns large stake in COIN,” and that he “led the White House digital asset working group to shape pro-crypto regulation.”
But the potential Hassett regime can’t be separated from Treasury Secretary Scott Bessent’s rising blueprint for the Fed. Bessent has been overtly questioning the post-crisis working framework. As Walter Bloomberg relayed from his CNBC look, “BESSENT ON FED: ‘AMPLE RESERVES REGIME’ MIGHT BE FRAYING.”
Forward Guidance host Felix Jauvin summarized the direction of journey in a post: “Bessent wants a fed chair that gets us out of balance sheet shenanigans and simplifying things to how they were pre-ample regime. Dovish FFR, hawkish balance sheet.” He added: “I don’t know if I can emphasize enough just how far away we are from any sort of QE copium.”
That framing issues for crypto. A Hassett Fed that cuts the coverage charge quicker in downturns is one factor; a return to full-blown quantitative easing is another. A “dovish FFR, hawkish balance sheet” combine would still be a friendlier macro setting than the post-2022 tightening cycle, but it isn’t a assured repeat of the 2020–2021 liquidity wave that lifted every risk asset concurrently.
Rate cuts without large-scale asset purchases help risk urge for food and decrease low cost charges, yet they don’t mechanically recreate the acute “everything rally” situations that many in crypto implicitly affiliate with Fed dovishness.
The political logic behind Hassett’s rise has been described most clearly by macro commentator EndGame Macro (@onechancefreedm). In a thread, he argues that “Hassett isn’t leading because he’s the most academic or the most central bankerish. He’s leading because he checks the boxes Trump actually cares about.”
Trump, he writes, desires somebody he already trusts, who has “spent years defending Trump publicly,” and who has been “openly critical of the Fed for being too slow, too cautious, and too political.” In that framework, “markets hear dovish. Trump hears I can deliver growth again. And crypto folks hear one of us.”
Markets are beginning to agree. On Polymarket, contracts monitoring the Fed chair race show Hassett around 53% at press time, reinforcing that shift from hypothesis to probabilistic base case.
Whether that interprets into a real “explosion” in crypto will rely less on personalities than on the interplay of three forces: how aggressively a Hassett Fed really cuts, how far Bessent is keen to go in shrinking or simplifying the steadiness sheet, and how markets reassess inflation, time period premia and fiscal risk under a more overtly political central bank.
The odds market is signaling that crypto is shifting nearer to the middle of US financial energy. The scale of any transfer in 2026 might be decided by the cycle – and by how a Hassett-led Fed balances “dovish rates” with “hawkish balance sheet” in follow.
At press time, the entire crypto market cap stood at $2.96 trillion.
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