Prediction markets Polymarket and Kalshi now favor Kevin Hassett, US President Donald Trump’s economic adviser, as the next potential Federal Reserve chair. Odds have surged to 66% on Polymarket and 74% on Kalshi, thanks to Hassett’s crypto-friendly reputation from his involvement with Coinbase and White House digital asset group.

Caitlin Long, CEO of Custodia Bank and crypto advocate, believes Hassett’s appointment could lead to significant changes at the Fed, potentially removing anti-crypto figures. Despite Hassett’s ties to Coinbase and crypto industry, past examples caution against assuming a pro-crypto stance based on personal affiliations.

Kevin Hassett, a Republican economist and potential Fed chair, has significant ties to the crypto industry through his Coinbase stake and advisory role. While his appointment may signal a more open stance on crypto regulation, markets should not overlook the Fed’s mandate on financial stability, which could temper deregulation expectations.

Fed’s approach to bank supervision faces pushback from Governor Michael Barr, a key architect of Operation Chokepoint 2.0, who opposes changes by Trump appointees. The Fed’s new Supervisory Operating Principles emphasize a risk-first framework, focusing on safety-and-soundness risks over procedural issues, potentially impacting oversight and enforcement actions.

If prediction markets are correct and Hassett becomes the Fed chair, he would enter an institution undergoing a pivot in bank supervision strategies. Despite his crypto-friendly reputation, Hassett’s leadership would need to balance regulatory changes with financial stability concerns in a rapidly evolving landscape.

Read more at Cointelegraph: Prediction Markets Bet on Coinbase-linked Hassett for Next Fed Chair