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Features writer
Connor Sephton
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Elena Bozhkova
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It’s often been said that Donald Trump runs his White House like a reality TV competition — and the current race to find the next Federal Reserve chair provides a perfect illustration of that.
Last year, five “finalists” were revealed by Treasury Secretary Scott Bessent. As we reported at the time, all of them are pro-Bitcoin, and many hold the view that interest rates should be much lower than they currently are.
That would immensely please the president, who has been fiercely critical of Jerome Powell refusing to slash the cost of borrowing — a move that would also reduce the expense of servicing America’s national debt.
Early on, it appeared that Kevin Hassett, the current director of the National Economic Council, was a favorite for the role. But a new frontrunner has since emerged, and it appears that he’s highly rated on Wall Street.
Rick Rieder is BlackRock’s chief investment officer of global fixed income. For years — and long before Donald Trump jumped on the bandwagon — he’s spoken positively about Bitcoin’s potential.
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Back in 2020, he revealed that BlackRock had started to dabble in Bitcoin. He told CNBC that investors were looking for assets that could appreciate against a backdrop of rising inflation.
The world’s biggest cryptocurrency was trading at a mere $51,000 at the time, and Rieder argued it could be a powerful way of diversifying a portfolio. Those who heeded his advice at the time would have doubled their money at the very least.
Fast forward to now, and BlackRock is the largest provider of exchange-traded funds tracking Bitcoin’s spot price in the US. The iShares Bitcoin Trust has cemented itself as an undisputed market leader in this still-nascent space. The latest figures from SoSoValue show it currently holds close to $70 billion in net assets.
Rieder has been shown to stick to his convictions during challenging market conditions — especially back in 2022, when the crypto industry was roiled by a number of high-profile bankruptcies. At the time, he argued that the crash was akin to the early days of the internet, when the dot-com bubble burst. Even though a number of startups went out of business at the time, the technology’s value endured and continued to build.
The Wall Street veteran has also argued that BTC could be a more effective store of value than gold — not least because it’s much more portable than the precious metal, with a known finite supply.
“I think digital currency and the receptivity — particularly millennials’ receptivity — of technology and cryptocurrency is real. Digital payment systems are real, so I think Bitcoin is here to stay.”
Those comments were made in 2020. Of course, BTC’s role as a store of value is being questioned right now — with gold surging dramatically in light of geopolitical instability as this digital asset stagnates.
While the arrival of a pro-Bitcoin Fed chair may be welcomed by many in the industry, some may have reservations. A common frustration among Bitcoiners centers on those who fail to separate BTC from crypto more widely. In their eyes, this decentralized digital asset should not be placed in the same basket as altcoins founded by named developers.
Rieder’s belief that interest rates should be lower could help make Bitcoin more attractive — and while this does align with Donald Trump’s worldview, the financier insists that the Fed’s independence should be protected. Given that the prospect of political meddling in the central bank has spooked the markets of late, this is a reassuring sign.
Poseidon Partners recently argued that choosing Rieder could even serve as a positive catalyst for Bitcoin’s price, writing:
“A Rieder nomination would be the most market-friendly on first reaction, reflecting strong confidence in his understanding of financial markets and policy transmission. Risk assets and crypto would likely respond positively in the near term, and bonds could benefit from expectations of pragmatic easing.”
However, it does anticipate potential challenges on the horizon, which could include “friction” during the confirmation process, and questions over whether his appointment would amount to a conflict of interest.
The Trump administration is expected to make its preference known soon. But with the president describing Rieder as “very impressive” during his appearance at the World Economic Forum in Davos this week, it’s little wonder that he’s become the favorite on the prediction markets.