Tether ties of Trump’s Fed candidate draw market attention

Kevin Warsh, nominated by Donald Trump as the next chair of the Federal Reserve, is linked to Tether through his long-standing advisory role at Anchorage Digital – the crypto bank that issues USAT, Tether’s new stablecoin designed to operate under U.S. regulation.

Before his nomination, Warsh had spent several years listed as an adviser to Anchorage Digital, a fact confirmed by archived versions of the company’s website. His name disappeared after January 16, but Anchorage CEO Nathan McCauley said Warsh had been involved “since the very beginning” of the bank’s development.

The launch of USAT marks a critical move for Tether as it seeks to establish itself in the U.S. regulated market. Unlike USDT – which is partially backed by bitcoin and gold – USAT is issued in full compliance with the new U.S. stablecoin law. Last week, Tether announced that the “made in America” stablecoin will use Anchorage’s infrastructure and be audited under U.S. standards.

The connection also highlights the role of Commerce Secretary Howard Lutnick, the former head of Cantor Fitzgerald. His bank already holds part of USDT’s reserves and will now act as custodian and primary dealer for USAT’s reserves.

Markets viewed the revelations as another example of growing integration between crypto firms and financial circles aligned with the Trump administration. A Fed chair candidate involved in shaping the bank behind a regulated Tether product intensifies debate about the future independence of the U.S. central bank.

Warsh’s nomination comes amid heightened tensions between Trump and current Fed chair Jerome Powell. It was recently revealed that Powell is the subject of a Justice Department criminal investigation – the latest escalation in a long-running battle over central bank autonomy.

Anchorage Digital, founded in 2017 and the first crypto bank to receive a federal charter, has long positioned itself as a “regulated bridge” between the U.S. banking system and digital assets. Now that its infrastructure underpins Tether’s new stablecoin, scrutiny of its relationship with the potential next Fed chair is increasing.

Trump has said he is confident the Senate will confirm Warsh, calling him a “top-tier candidate” who could win support even from Democrats.