The Senate Banking Committee voted to approve Federal Reserve Chair pick Kevin Warsh's nomination, sending it to the full Senate for a final vote.

On Wednesday, the committee voted 13 to 11 to advance Warsh, splitting along party lines.

"Kevin Warsh's leadership is absolutely essential now at the Federal Reserve than ever before," said Senate Banking Committee Chair Tim Scott, R-S.C., after the vote.

During a nomination hearing last week, Warsh faced extensive questioning about interest rates, an issue that has become increasingly contentious between President Donald Trump and current Federal Reserve Chair Jerome Powell. Trump has also openly talked about trying to fire Powell and attempted to fire Federal Reserve Governor Lisa Cook last year.

Meanwhile, the Department of Justice had opened a criminal investigation against Powell, alleging false statements regarding a renovation of the central bank's headquarters. Wednesday also coincides with what is likely the last final policy meeting for Powell as chair since his term ends next month, though he would still stay on as a member of the board of governors.

Sen. Thom Tillis, R-N.C., who had previously said he would withhold support for Warsh until that aforementioned investigation concluded, ultimately voted in favor of the nomination following the DOJ’s decision to drop it last week.

The top Democrat of the committee, Sen. Elizabeth Warren, has voiced concerns about President Trump's control of the Federal Reserve, given that he has tried to fire Powell in the past. On Wednesday, she also raised concerns about whether the investigation into Powell would actually end, adding that "no one is fooled."

Warren voted against the nomination, saying that a vote would help Trump "seize control of the Fed and artificially juice the economy."

Tillis pushed back against Warren's comments about the Powell investigation ending, adding that he is confident that the probe is over.

Crypto 

During last week's hearing, Warsh also addressed the future of digital assets and said that he believed digital assets are already ingrained in the financial services industry.

Warsh previously served on the Federal Reserve's Board of Governors from 2006 to 2011 under Presidents George W. Bush and Barack Obama, and formerly worked as a banker at Morgan Stanley. Warsh had spoken a few times about crypto, calling bitcoin an "important asset that can help inform policymakers."

This month, as part of the nomination process, Warsh's financial investments were released, disclosing dozens of crypto holdings, including in decentralized derivatives trading exchange dYdX, decentralized exchange protocol Lighter, venture capital firm Polychain, NFT-focused company Dapper Labs, as well as Solana and Optimism.