In Washington, one name is increasingly capturing investor attention: Kevin Hassett. The economist, known for his close ties to former President Donald Trump, is now seen as the leading candidate to replace Jerome Powell as Chair of the Federal Reserve when Powell’s term ends in 2026. Hassett’s reputation as a monetary-policy dove and his direct links to the crypto sector are fueling expectations of a more accommodative Fed, a scenario that many believe could unleash a powerful new wave of global liquidity and trigger an explosive phase for digital assets.
A Veteran Economist With Deep White House Experience
Kevin Hassett is far from an outsider. The American economist has advised multiple Republican administrations and previously served as Chair of the Council of Economic Advisers during Trump’s first term. That role placed him at the center of key economic decisions and in constant communication with financial markets and major corporations.
Since 2025, Hassett has led the National Economic Council, coordinating the administration’s economic policy. His position gives him broad influence and places him among the most experienced profiles in Washington’s economic architecture. Investors view him as a steady hand in times of crisis and a reliable messenger of Trump’s priorities, factors that significantly strengthen his chances of becoming the next Fed Chair.
JUST IN: ?? Former Coinbase advisor Kevin Hassett emerges as favorite to become next Fed Chair ? pic.twitter.com/kC18kQf3iM
— Bitcoin Archive (@BitcoinArchive) November 25, 2025
Hassett’s Unique Proximity to the Crypto Industry
What sets Hassett apart is not just his political résumé. He has direct, documented connections to the digital asset industry. Hassett previously served as an adviser to Coinbase, contributing to regulatory strategy and macroeconomic analysis. His public financial disclosures also show a sizable personal stake in the exchange’s stock, suggesting a meaningful level of personal engagement.
This relationship raises eyebrows in traditional finance but inspires confidence within the crypto ecosystem. A potential Fed Chair who understands the internal mechanics of a major exchange, from custody to liquidity management and compliance, could bring a more nuanced perspective to crypto regulation. Hassett frequently highlights financial innovation as a driver of growth, contrasting with more skeptical policymakers who primarily view crypto as a source of systemic risk.
Why Markets Associate Hassett With a Strongly Dovish Fed
For months, Hassett has been openly critical of the current monetary framework. He argues that the Fed kept interest rates elevated for too long, endangering employment, investment and household confidence. With inflation cooling, he favors faster and more aggressive rate cuts.
His growing prominence has already influenced market expectations. US Treasury yields have drifted lower as traders internalize a potential shift toward a 3% policy rate by 2026 — and possibly lower if economic conditions weaken. Analysts also anticipate an earlier-than-expected pause in quantitative tightening, stabilizing the Fed’s balance sheet. Together, these expectations paint a picture of a markedly more dovish central bank compared to recent years.
Could a Dovish Fed Under Hassett Ignite a Crypto Rally in 2026?
A more accommodative Federal Reserve doesn’t just lower borrowing costs. It expands global liquidity. When monetary conditions ease and the Fed signals a friendlier stance toward markets, investors tend to rotate out of ultra-safe bonds and back into riskier assets such as equities, credit and alternative investments.
Crypto historically thrives in these environments. Bitcoin, in particular, reacts quickly to liquidity shifts due to its scarcity, high trading volumes and sensitivity to market sentiment. Following the severe deleveraging seen in late 2025, many investors are still waiting for a decisive signal to re-enter the market. A Hassett-led Fed pursuing lower rates could provide exactly that. Rising liquidity paired with declining BTC supply on exchanges creates a powerful tailwind for price appreciation.
A 2026 backdrop defined by rate cuts, a softer dollar and renewed risk appetite could set the stage for a fresh bull cycle. While uncertainty remains, from inflation risks to fiscal pressures and geopolitical shocks, the growing probability of a Hassett Fed is already reshaping expectations. To many investors, it suggests one simple idea: a more dovish central bank led by a policymaker open to financial innovation may offer crypto markets the monetary fuel they have lacked since the last major bull run.
