Trump’s Fed Pick Advised Tether-Linked Crypto Bank Anchorage Digital

Kevin Warsh, the American financier and former Federal Reserve governor nominated by former President Donald Trump for the central bank’s top role, served for years as an advisor to Anchorage Digital. According to Anchorage’s co-founder and CEO Nathan McCauley, Warsh “has been an advisor to Anchorage since the very beginning.” The company’s website listed him as an advisor until his profile was removed sometime after January 16, as documented by the Internet Archive. Anchorage Digital, founded in 2017, holds the distinction of being the first crypto bank to receive a federal charter in the United States, positioning it as a regulated bridge between traditional banking and digital assets.

The significance of this advisory relationship is amplified by Anchorage Digital’s current role as the issuer of Tether’s newly launched USAT stablecoin. When announcing USAT last week, Tether CEO Paolo Ardoino emphasized that the product was “made in America” and represented the company’s first offering designed to comply with stablecoin regulation passed into U.S. law this summer. An Anchorage Digital spokesperson acknowledged Warsh’s contributions, stating, “We are grateful to Kevin Warsh for providing counsel to Anchorage Digital for many years, and wish him the best throughout the confirmation processes as he is a phenomenal candidate.”

Tether’s launch of USAT marks a strategic pivot for the firm, which is based in El Salvador. The company’s flagship stablecoin, USDT, with a market capitalization of $185 billion, is partially backed by assets including Bitcoin (BTC) and gold—a structure that does not align with the new U.S. regulatory requirements. In contrast, USAT is explicitly framed as abiding by the American regulatory framework, utilizing a regulated U.S. bank, Anchorage Digital, as its issuer.

This move further intertwines Tether’s operations with established Wall Street entities. Cantor Fitzgerald, the investment bank, has for years been known to custody a portion of the reserves backing USDT. Tether confirmed last week that Cantor Fitzgerald would also serve as the designated reserve custodian and preferred primary dealer for the new USAT stablecoin. This creates a potential link between Warsh and Commerce Secretary Howard Lutnick, who led Cantor Fitzgerald prior to his own nomination. Lutnick recently finalized a major divestiture of his interests in Cantor Fitzgerald and its subsidiaries to comply with government ethics agreements, transferring his ownership to trusts for his children.

Trump’s nomination of Warsh arrives during a period of heightened scrutiny over the Federal Reserve’s political independence. Throughout his campaign for a second term, Trump has publicly pressured current Fed Chair Jerome Powell to lower interest rates. Tensions escalated last month with the revelation of a criminal investigation by the Department of Justice into Powell. In this context, Warsh’s nomination and his connections to the crypto sector are being closely watched.

On Saturday, Trump expressed confidence in Warsh’s confirmation in the U.S. Senate, describing him as a “high-quality person” who could win support from some Democrats and “should have no trouble getting through.” The nomination places a figure with direct advisory experience in the federally chartered crypto banking space into consideration for the nation’s most powerful financial regulatory role, as the sector itself navigates new legislation like the stablecoin regulation that enabled USAT’s launch.