White House Advisor's Crypto Holdings Raise Conflict-of-Interest Fears

National Economic Council Director Kevin Hassett held between $1 million and $5 million in Coinbase shares at the end of 2022, nearly a year into his time at the White House. According to a newly surfaced financial disclosure, Hassett advised Coinbase before joining the administration and has said he recused himself from crypto-related matters.

However, this timing raises questions about potential conflicts of interest. Three days after taking office, President Trump created a crypto working group inside the NEC, and Hassett's office was required to receive its final recommendations. The group later proposed major regulatory changes covering banking, stablecoins, and taxation.

Ethics expert Virginia Canter called it 'a clear conflict of interest' or at least the appearance of one, questioning how a broad recusal could have affected Hassett's ability to do his job: coordinating economic policy across agencies like Treasury, the SEC, and the CFTC. Coinbase has been deeply involved in shaping crypto policy this year, with the company dropping its lawsuit against the SEC shortly after Trump took office.