Federal Reserve Chair Kevin Warsh told the House Financial Services Committee on Tuesday that the central bank has no interest in bailing out crypto or stablecoins if the sector faces a run, drawing a firm line during his first congressional testimony since taking the job.
Key Takeaways
Fed Chair Kevin Warsh told Congress on July 14, 2026 the Fed won’t bail out crypto or stablecoins.Rep. Brad Sherman pressed Warsh on a potential run in crypto markets during the House hearing.Warsh holds the Fed rate at 3.5% to 3.75% and will also appear before the Senate on Wednesday.Warsh opened his answer by pointing to his own history with that crisis. “I still have the scars from the 2008 financial crisis,” Warsh said. “We all carry the scars from the extraordinary efforts that my colleagues and I undertook under Chairman Bernanke’s leadership. That is not something we want to repeat.”
“We do not want to be in the bailout business, full stop.”
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