In a revelation that has sparked ethical debates within the highest levels of the US government, Kevin Hassett, Director of the National Economic Council (NEC) under President Donald Trump, held between $1 million and $5 million in vested shares of Coinbase at the end of 2025. This disclosure comes as the Trump administration aggressively reshapes federal cryptocurrency policy, raising questions about potential conflicts of interest.
The Disclosure and Ethical Concerns
Hassett’s previously unreported 2025 annual financial disclosure lists these investments as vested Coinbase stock. Notably, Hassett had previously served as an advisor to Coinbase until January 2025, just before joining the White House. Despite nearly 11 months into his tenure, he had not fully divested from the crypto giant. While the filing was recently released, it only covers holdings through 2025, leaving open whether he still possesses these assets today.
The timing is critical. Just three days after taking office in 2025, Trump established the President’s Working Group on Digital Asset Markets within the NEC. Hassett’s position or a designee was mandated as a member, with final recommendations routed through his office. The group, chaired by White House crypto advisor David Sacks, proposed sweeping regulatory changes affecting digital-asset markets, banking, stablecoins, and taxation.
Recusal vs. Influence
Hassett stated that he recused himself from all crypto-related matters while ethics officials reviewed his situation. "Since day one, Kevin Hassett has and continues to be in full compliance with all ethical requirements, including his recusal from all cryptocurrency-related matters," White House spokesperson Kush Desai told CNBC.
However, experts argue that simple recusal may not be sufficient. Virginia Canter, chief counsel at the Democracy Defenders Fund, highlighted the complexity: "I think he’s got a major conflict of interest, or the appearance of one." She noted that if Hassett was recused broadly from crypto discussions, it could have sidelined him from coordinating broader economic policy across agencies like the Treasury, SEC, and CFTC—all of which were involved in the crypto working group.
The final report from the crypto working group listed Robin Colwell as the NEC representative rather than Hassett, suggesting significant exclusion from key deliberations. Yet, critics question how effective this recusal truly was in practice, given the centrality of crypto to the administration's agenda.
Broader Context: Crypto and Politics
This incident occurs against a backdrop of intense political engagement from the crypto industry:
- Trump’s Personal Gains: President Trump reported over $1.4 billion in income from family crypto ventures in 2025, including through World Liberty Financial.
- Regulatory Shifts: The SEC dismissed its enforcement lawsuit against Coinbase with prejudice in February 2025, aiming to facilitate a broader regulatory overhaul.
- Industry Lobbying: Coinbase CEO Brian Armstrong has met repeatedly with Trump and White House officials, advocating for the Clarity Act. Armstrong recently stated the bill was "ready to get a yes vote" ahead of key Senate votes.
Despite Coinbase’s stock performance struggling since Trump’s return to office, the company remains a pivotal player in pushing for federal regulatory clarity, pledging millions more in spending ahead of the midterms.
While the White House maintains Hassett’s compliance, the intersection of massive personal wealth, high-level policy-making, and rapid regulatory change keeps the spotlight firmly on the ethics of crypto governance in Washington.
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