Trump Fed Rejected Pick Joins Treasury: Can Bitcoin and XRP Benefit?

Judy Sheltonwhose nomination to the Fed was blocked by the Senate in 2019, has joined the Treasury as an adviser – and traders wonder if that matters to Bitcoin (CRYPTO: BTC) and XRP (CRYPTO:XRP).

What Shelton’s new role actually covers

The Treasury announced Friday, according to CNBC, that Shelton would advise Bessent on monetary policy, “with a particular focus on assessing financial conditions in China.”

She is not a China specialist based on her background. His career has centered on monetary theory, including a 1989 book on the Soviet economic collapse and a 1994 book on the construction of a unified international monetary system.

His appointment is not really new on the markets. The New York Times first reported it on September 16, almost three weeks before Friday’s official announcement, and Bitcoin showed no name-related reactions either time.

Why Shelton is not a Bitcoin bull

Shelton’s background leans toward gold, not crypto. She has:

• Long pushed to peg the dollar to gold
• Never asked for Bitcoin to become a reserve currency
• CNBC was told that crypto is not a reliable store of value once converted back to fiat currency
• Reported the tax drag on spending in crypto, since each transaction can generate capital gains

Shelton has shown some openness to monetary competition, proposing in a 2018 Cato article that virtual currencies circulate alongside government money.

At a Yahoo Finance conference in November 2024, she said the decentralized finance movement “effectively reflects less confidence in government management of money,” welcoming currencies that challenge the dominance of the dollar.

This reflects a broader view of monetary competition, not an endorsement of Bitcoin itself.

The real channel: China’s monetary policy

Shelton’s current assignment focuses on China’s financial conditions. This gives this nomination its clearest connection to cryptography.

In August 2019, the yuan fell beyond 7 to the dollar and the Treasury labeled China a currency manipulator.

Bitcoin rose 8% on the same day, even as U.S. stocks fell about 3%. However, Bitcoin also traded at a discount in China at the time, weakening the safe-haven explanation for the rally.

The direction of its influence matters most:

• A push toward faster yuan appreciation would likely weaken the dollar, a historically light tailwind for Bitcoin.
• A sharper confrontation between the United States and China tends to have the opposite effect, as seen in February 2025, when Bitcoin fell below $80,000 due to tariff uncertainty despite a crypto-friendly administration.

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