After more than eight years leading the U.S. central bank, Jerome Powell’s term ended on Friday and he was succeeded by the seventeenth Federal Reserve Chair, Kevin Warsh.
With President Trump publicly frustrated by Powell’s reluctance to cut key interest rates, the new appointment is expected to bring a different tone to the Fed’s monetary policy stance. Warsh has previously signaled a more receptive attitude toward cryptocurrencies, notably Bitcoin, which has led some altcoin supporters to wonder whether that openness might extend to other digital assets.
To explore that question, one of the most widely used AI models was asked whether XRP, the third-largest non-stablecoin cryptocurrency by market capitalization, could stand to gain under Warsh’s leadership.
Far More Nuanced
Gemini noted that Bitcoin often benefits from perceptions of being “digital gold,” whereas the outlook for utility-focused altcoins such as XRP under a Warsh-led Fed is “far more nuanced.” The analysis suggested that Warsh may combine disciplined macroeconomic policy with a willingness to engage with financial innovation, a combination that could have a distinct impact on the Ripple ecosystem.
Warsh’s pre-appointment disclosures show investments across decentralized finance (DeFi), Layer-1 blockchains, and digital asset exchanges, indicating an appreciation for cryptocurrency use cases beyond pure store-of-value arguments.
Significantly for XRP, Warsh has spoken about the “modernization of money” and argued that central banks should proactively consider digital currencies. He has urged the U.S. to weigh a central bank digital currency (CBDC) to remain competitive with initiatives such as China’s digital yuan.
Ripple has positioned the XRP Ledger as a potential neutral bridge asset for multiple CBDC architectures, which could create utility-driven demand for the token if CBDC adoption advances.
“A Fed Chair who is actively exploring the integration of digital, blockchain-based money into the traditional financial system provides a massive structural tailwind for Ripple’s core business model,” Gemini concluded in its bullish scenario.
But There’s More
However, the picture is not uniformly optimistic. The AI model cautioned that Warsh has frequently attributed the proliferation of alternative digital assets to periods of loose monetary policy. Like many altcoins, XRP depends heavily on broad market liquidity and speculative capital.
Gemini suggested that under Warsh’s approach, capital in the U.S. could become more expensive as he seeks to shrink the Fed’s footprint in financial markets. In such a tighter liquidity environment, investors often rotate out of higher-risk altcoins into perceived safe havens or into Bitcoin.
If the new Fed Chair pursues higher real interest rates and a smaller balance sheet, XRP could face significant downward pressure as speculative capital retreats. In short, while Warsh’s openness to digital money and CBDCs could create structural opportunities for Ripple, tighter macroeconomic conditions and reduced liquidity could simultaneously pose material headwinds for XRP’s price performance.