Wassh is approved to serve as FED chair, and Bitcoin falls below $80k

Bitcoin fell below $80,000 on May 14, trading at around $79,560. On Wednesday, the U.S. Senate confirmed Kevin Warsh as the next FED chair with a vote of 54 to 45, which is the final confirmation procedure following the transition from Powell. According to the CME FedWatch tool, the market is currently pricing a 30% probability of a FED rate hike in December, and the chance of a rate cut within the year has been ruled out.

Confirmation procedure: two-step vote dates and Powell’s departure arrangements

The Senate completed two separate confirmation votes: on May 12, 2026, a vote of 51 to 45 confirmed Warsh as a FED governor for a 14-year term; on May 13, 2026, a vote of 54 to 45 completed a cloture vote to end debate and confirmed Warsh as chair for a 4-year term. Powell’s term as chair ends on May 15, 2026. Powell has publicly confirmed that he will continue to serve as a governor until January 2028, and his governor term is not affected by changes in the chair position. In April, the FBI closed investigations related to Powell, and the confirmation process was advanced as a result.

CLARITY Act: Committee deliberation scheduled for Thursday

The U.S. Senate Banking Committee released the latest version text of the “Clarity Act” (CLARITY) on May 11, 2026 (Monday), which includes a compromise provision regarding stablecoin yield. The committee has scheduled the consideration vote for May 14, 2026 (Thursday). Under Senate procedures, after the committee approves it, the bill will be submitted to the full Senate for a vote.

Market rate pricing: current CME FedWatch data

Based on data from the CME FedWatch tool as of May 14, traders have largely ruled out the possibility of a FED rate cut within the year, and the market is pricing a 30% probability of a FED rate hike by December. Soojin Kim, a strategist at Mitsubishi UFJ Financial Group, said the market is currently pricing a probability of more than 40% for a rate hike by the end of the year. As a result, U.S. Treasury yields have risen, putting pressure on assets that do not generate yield.

FAQ

What is the term structure of Kevin Warsh’s FED role?

Warsh’s term as FED chair is 4 years, and he also serves as a governor, with a 14-year governor term. Powell’s chair term expires on May 15, 2026, and he will continue to serve as a governor until January 2028.

What is the direct reason Bitcoin fell below $80,000 on May 14?

The U.S. April CPI year-over-year increase was the largest in three years. The market repriced the probability of FED rate hikes, pushing U.S. Treasury yields higher. Soojin Kim of Mitsubishi UFJ Financial Group said the rise in yields creates direct pressure on non-yielding assets, sending Bitcoin down to around $79,560.

What is the next step after the CLARITY Act is considered on Thursday?

Under Senate procedures, if the Senate Banking Committee passes the bill on May 14, 2026 (Thursday), the CLARITY Act will be submitted to the full Senate for a vote. The committee has not yet announced the scheduled timetable for the full-Senate vote.