Senator Thom Tillis lifted his hold on Kevin Warsh’s Federal Reserve nomination on April 27 after the Department of Justice closed its criminal inquiry into Fed Chair Jerome Powell. Tillis’s decision clears the way for a Senate Banking Committee vote Wednesday and makes a full Senate vote likely before Powell’s chair term ends May 15.
Tillis had blocked the nomination since January, arguing that the DOJ investigation into alleged cost overruns on the Fed’s headquarters renovation posed a threat to central bank independence. His hold produced a 13–11 Republican majority on the Banking Committee that was effectively deadlocked, since a single Republican defection could have stalled Warsh’s advancement. US Attorney for the District of Columbia Jeanine Pirro announced the office was closing the probe and transferring oversight of the renovation review to the Fed inspector general, which had been examining the project since last July. Tillis said DOJ officials told him the probe was “completely and fully ended” and that any renewed criminal investigation would require a formal referral from the inspector general.
At his April 21 confirmation hearing, Warsh pledged to act as an “independent actor,” saying he had not made commitments to the White House on interest-rate choices. The nomination now moves to a committee vote Wednesday, with a full Senate decision expected under compressed timing because Powell’s chair term expires May 15. Senate Democrats remain unified in opposition.
Warsh is widely regarded as unusually knowledgeable about cryptocurrencies for a Fed nominee. His financial disclosures show indirect venture fund exposures spanning DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure. He has said Bitcoin can exert a constructive, disciplinary effect on economic policy and acknowledged that digital assets are already part of the financial-services landscape. As confirmation prospects improved, Bitcoin prices rose roughly 10%, trading near $78,000 in recent weeks, and market prediction odds that had fallen while Tillis’s hold was in place are expected to rebound.
The Federal Open Market Committee is also scheduled to meet Wednesday, and markets are broadly expecting interest rates to remain unchanged. Powell has said that if Warsh is not confirmed before May 15, he would continue as a voting member of the Fed’s board until January 2028, a move that would preserve institutional continuity even if confirmation is delayed.
Acting Attorney General Todd Blanche confirmed the transfer of the renovation review to the Fed inspector general and said the DOJ would reopen a criminal probe only if the inspector general uncovered evidence of criminal conduct and issued a referral. Senator Elizabeth Warren criticized Warsh as a “sock puppet” and urged Republicans who profess to value Fed independence not to advance the nomination.