Trump endorses Coinbase shareholder to take over the Federal Reserve

When Trump was at a White House event and pointed casually to the audience, saying “There’s still a ‘potential’ Fed Chair sitting here,” Wall Street’s ears perked up. The Kevin Hassett he mentioned, an economist holding millions of dollars in Coinbase stock, instantly became the focus of global financial markets.

According to the latest data from prediction market Polymarket, Hassett’s chances of becoming Federal Reserve Chair have soared to 78%, with that steep curve reflecting not only capital bets but also signaling a profound power reshuffle on the horizon.

This is not just a personnel change but a potential upheaval that could undermine the Fed’s independence, reshape U.S. monetary policy, and bring a historic turning point to the crypto market. As insider information leaks out, the blueprint of printing money and the Treasury “merging” begins to emerge. A new financial era led by crypto stakeholders is accelerating.

1. Market Signals: Capital Votes with their Feet to Seize the New Era

Market reactions are always the fastest and most genuine. Before Trump’s “spoiler,” savvy funds had already begun to act quietly.

● Prediction data surges: As a market indicator, Polymarket shows Hassett’s win probability jumping from less than 30% in November to 78% in December. This is no coincidence. Speculators see that behind this orange curve are institutional investors and hedge funds making early moves based on political intelligence. They are betting not only on Hassett himself but on the policy shift he represents—a more relaxed, friendlier macro environment.

● Wall Street’s interpretation: Traditional analysts initially scoffed, dismissing this as political noise. But as Trump’s public hints and subsequent leaks emerged, giants like Goldman Sachs and Morgan Stanley began urgently assessing risks. An internal memo revealed that some trading departments adjusted strategies, increasing allocations to crypto-related assets to hedge against a sudden policy ceiling removal. Capital is betting real money on this upheaval.

● Crypto market celebration: Bitcoin and Ethereum surged over 15% in a single week after the news broke, with Coinbase’s stock reaching a new high for the year. The investor logic is simple: if Hassett takes office, the Fed Chair will be deeply aligned with crypto giants for the first time, regulatory threats could significantly diminish, and liquidity gates might be fully opened.

2. Trump’s “Leak”: Confirming the Priority of His Position and Sounding the Starting Gun

Trump’s seemingly casual remarks are actually carefully crafted political signals. His words are known for “blending truth and fiction,” but this time, the direction is clear.

● Weight of the public hint: During the White House event, Trump not only named Hassett but also emphasized he is a “respected person.” In Washington’s context, such public endorsement is almost a pre-nomination signal. History shows that Trump, during his first term, often complained about Fed rate hikes. Now he chooses Hassett—a loyalist who previously served as his economic adviser—to ensure low-interest policies continue, supporting economic growth and stock market prosperity.

● Loyalty over experience: Although Hassett was chairman of Trump’s Council of Economic Advisers, he’s not a traditional central banking elite. His strength lies in absolute loyalty and alignment with Trump’s agenda. Sources reveal Trump privately praised Hassett as “knows money and politics,” reflecting his distrust of the establishment. Choosing Hassett is a key move for Trump to break the “deep state” control over the financial system.

● Chain reaction of spoilers: Once this was said, the media flooded to dig into Hassett’s background, and his Coinbase holdings were quickly exposed, further boosting market expectations. Trump’s team did not deny the reports but instead leaked more details, shaping public opinion. This “leak-verify-explode” pattern is a typical Trump political tactic.

3. The Grand Chessboard of Power: Fed and Treasury “Merging,” Checks Vanishing

Appointing Hassett is just part of the puzzle; larger reforms involve the restructuring of Washington’s economic power.

● Bessent’s dual role: Exclusive sources reveal that if Hassett takes the Fed Chair, then current Treasury Secretary Scott Bessent is highly likely to become head of the White House National Economic Council (NEC). Bessent is a Trump confidant and crypto-friendly figure but previously declined a Fed position, preferring to oversee overall policy. This arrangement means:

○ Treasury + NEC: Bessent controls both “purse strings” (fiscal spending) and “pen” (economic policy-making), becoming an unprecedented “economic czar.”

○ Fed cooperation: Hassett would implement low rates at the central bank, providing cheap funds for fiscal expansion.

● The end of checks and balances: Since the mid-20th century, Fed independence has been viewed as the cornerstone of inflation control, often keeping its distance from White House policies. Under this new setup, the Treasury (spending) and the Fed (money printing) will work in close coordination, eroding internal checks built over decades. Policy implementation will accelerate, but inflation risks could spiral out of control.

● Crypto perspective benefits: For crypto markets, this unity means regulatory hurdles could be cleared. Both Bessent and Hassett are crypto allies, and their partnership might ensure that monetary policy and fiscal stimuli are more inclined towards innovation sectors, including blockchain and digital assets.

4. Shareholders Control the Market: Hassett’s Coinbase Holdings and Interests Alignment

Hassett’s personal financial disclosures add drama to this upheaval.

● Naked conflict of interest: Public records show Hassett owns substantial Coinbase stock and has served as an advisor to the company for a long time. This makes him the first Fed Chair candidate in U.S. history with direct financial ties to the crypto industry. His family assets are closely linked to Bitcoin’s price movements, fundamentally altering policy logic:

○ No need for education: He doesn’t need to learn “what is blockchain” like traditional officials; he benefits directly from industry growth.

○ Regulatory stance: He has publicly criticized the SEC’s overregulation, claiming it stifles innovation. Once in office, he may push the Fed to adopt a more open attitude toward stablecoins, CBDCs, and resist harsh crackdowns.

● From opponent to backstage supporter: The Fed has long maintained a cautious stance on crypto, viewing it as a financial stability threat. But Hassett’s appointment could turn it into a “strongest backer” of the industry. For example, in banking access and liquidity provision, Fed policies might lean toward inclusiveness, indirectly promoting crypto mainstreaming.

● Ethical controversy: Wall Street elites have warned that this presents a conflict of interest. But Trump’s team sees it as “breaking the old system”—letting industry insiders manage the market is better than outsiders blindly controlling. Hassett’s holdings could actually reassure crypto investors.

5. Timeline Reveal: Faint Signs Showing a Mature Plan

Looking back over the past few months, the rhythm of this power transfer is astonishingly clear.

● September groundwork: Bessent, acting as “examiner,” interviewed Fed candidates but explicitly refused to take the role himself. This indicates Trump had a plan all along: to have Bessent in a more central position rather than bound to the Fed.

● November rumors: Media started breaking news that Hassett was leading the race, with initial fluctuations in Polymarket data. The market was skeptical at first, but insiders said Trump had privately finalized the candidate, awaiting the right moment to announce.

● December explosion: Trump’s public spoiler, coupled with leaks about Bessent leading NEC, formed a closed logical loop. The timeline fits perfectly, showing this isn’t a spur-of-the-moment decision but a carefully designed strategy.

● Early next year official announcement: Trump has hinted at a formal announcement “early next year.” Political analysts predict it could happen around the inauguration, maximizing public impact. Senate hearings will then become the focus, with Hassett’s holdings likely to come under scrutiny.

6. Outlook for the 2026 Macro Environment

If the Hassett-Bessent combo is realized, the U.S. economy in 2026 could face unprecedented scenarios.

● Extremely loose monetary policy: As a Trump loyalist, Hassett would push for aggressive rate cuts to stimulate growth. Coupled with Trump’s tax cuts and infrastructure plans, liquidity could flood the markets, the dollar might depreciate further, and hard assets like gold and cryptocurrencies could become safe havens.

● Policy execution speed doubled: With the Treasury and Fed no longer at odds, economic stimulus plans will be implemented lightning-fast. This benefits crypto markets in the short term but could also trigger bubbles in the long run.

● Regulatory-friendly era: Under administrative pressure, agencies like the SEC may slow down lawsuits against crypto firms and focus on building frameworks. Hassett’s Fed might directly explore digital currency integration, opening the door for regulatory compliance in the crypto ecosystem.

● Global ripple effects: U.S. policy shifts will force other central banks to follow suit, extending the global low-interest environment. Cryptocurrencies, as a rising asset class, will become increasingly attractive.

7. Wall Street’s Warnings and Trump’s Determination

The upheaval faces resistance from traditional finance elites.

● Business sector warnings: According to Fox Business, several Wall Street CEOs sent confidential messages to Trump warning that appointing Hassett could “destroy the Fed’s credibility,” causing market turbulence. They worry conflicts of interest and loyalty might weaken the central bank’s ability to fight inflation.

● Media battle: The Wall Street Journal editorial criticized the move as “politicizing the central bank,” but Trump’s camp counterattacked, accusing the establishment of fearing change. This divide is reflected in polls: ordinary investors remain optimistic about crypto’s future, while traditional economists worry about chaos.

● Trump’s possible response: History shows Trump often ignores establishment warnings and acts decisively. Sources say he views Hassett’s appointment as a “crucial battle to drain the swamp,” even at the risk of short-term market volatility. With the Senate controlled by Republicans, Hassett’s confirmation seems highly probable.

8. The Divide and Fusion of Traditional and Emerging Sectors

Whether or not the appointment ultimately occurs, market consensus is already reshaping.

● Anxiety in traditional finance: Banks and insurers worry that losing Fed independence could lead to runaway inflation and a trust crisis in the dollar. They are beginning to hedge risks by increasing holdings in non-U.S. assets, indirectly boosting crypto allocations.

● Dawn of the crypto era: The industry is shifting from “passive compliance” to “active governance.” If Hassett takes office, companies like Coinbase may gain more policy advisory roles, leading to deeper integration of crypto into the dollar financial system, even pushing Bitcoin toward reserve asset status.

● Opportunities in division: This macro split—traditional elites worried, emerging forces excited—will create new investment paradigms. Smart capital is already positioning itself: betting on crypto infrastructure, compliance services, and tech stocks benefiting from loose policies.

Trump’s endorsement of a “Coinbase shareholder” taking over the Fed is no isolated event. It’s a product of clash between political power, economic interests, and technological waves, marking a new chapter in U.S. financial governance. The merging of printing money and Treasury control, the collapse of checks and balances, might bring short-term growth euphoria but also hide risks of inflation and debt. For crypto markets, it’s a historic opportunity: policy ceilings could be shattered, the industry could move from periphery to core, completing the last piece of the dollar system puzzle.

In the coming year, we will witness the final act of this upheaval—whether Hassett secures the Fed Chair position or not, capital has already spoken with its feet, and the new era’s bell is ringing. Investors’ task is not to guess but to understand: when shareholders start controlling the market, rules have changed. It’s time to go with the flow.