White House economist’s $5 million Coinbase holding sparks conflict concerns

White House chief economic adviser Kevin Hassett owned as much as $5 million worth of Coinbase stock while serving in the Biden‑to‑Trump transition, CNBC reported. The disclosure, filed as part of the administration’s financial‑interest paperwork, shows the former CBO director maintained a sizable position in the leading cryptocurrency exchange during a period when the White House was actively revising its approach to digital assets.

The filing indicates Hassett’s Coinbase holdings peaked at roughly $5 million, a figure that translates to several thousand shares at current market prices. The stock was acquired before his appointment and was not sold after he assumed his advisory role, according to the public disclosure. Hassett’s financial statements list the investment under “publicly traded securities,” but they do not detail any trades made after his confirmation.

Federal ethics rules require senior officials to recuse themselves from matters that could affect personal financial interests. Critics argue that Hassett’s continued ownership creates a potential conflict, especially as the Trump administration signals a shift toward more permissive crypto regulation and has signaled possible legislative changes that could benefit exchanges like Coinbase. The Office of Government Ethics typically advises officials to divest or place assets in blind trusts when a direct policy overlap exists, yet the disclosure does not clarify whether Hassett sought a formal waiver or recusal.

Trump’s recent statements have painted crypto as a strategic priority, promising to roll back what he calls “over‑regulation” and to foster a competitive U.S. market. As the top economic adviser, Hassett would be consulted on the fiscal implications of such policy moves, including tax treatment of digital assets and the broader impact on financial stability. His background in macroeconomic modeling and previous work on market efficiency makes his input valuable, but the overlap with personal holdings could undermine public confidence in the administration’s impartiality.

The situation mirrors earlier controversies, such as the 2022 revelation that Treasury secretary Janet Yellen held sizable holdings in companies affected by pandemic relief measures, prompting calls for stricter enforcement of conflict‑of‑interest rules. If the White House determines that Hassett’s stake poses a material conflict, he may be required to sell the shares or place them in a blind trust, a step that would align with standard ethical practice for senior officials handling policy that directly touches their investments.

The episode underscores the growing scrutiny of crypto‑related policymaking and the need for transparent financial disclosures when personal assets intersect with public duties. As Congress debates new crypto legislation, the administration’s handling of Hassett’s holdings could set a precedent for how future officials navigate the rapidly evolving digital‑currency landscape.