New Era

Jeff

Bitcoin

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Reserve

<div class="key-points-section">
 <b>Key Points:</b>
 <ul>
  <li>The Federal Reserve's new purchasing program labeled as "qualitative easing."</li>
  <li>Jeff Park highlights reserves as "perfect money."</li>
  <li>Stablecoins emphasized as crucial to cryptocurrency persistence.</li>
 </ul>
</div>
<p>Jeff Park, former Morgan Stanley NFA trader, asserted on X platform that the Federal Reserve's reserve management program essentially represents upgraded quantitative easing, termed as 'qualitative easing.'</p>
<p>This perspective underscores cryptocurrencies' durability, highlighting stablecoins' critical currency quality role amid the Federal Reserve’s evolving monetary strategies.</p>
<h2 id="federal-reserve-s-qualitative-easing-sparks-crypto-market-reaction">Federal Reserve's "Qualitative Easing" Sparks Crypto Market Reaction</h2>
<p>The Federal Reserve introduced a purchasing program described by Jeff Park as <strong>"qualitative easing"</strong> rather than traditional reserve management. This follows a sudden relaxation of the Supplementary Leverage Ratio (SLR) rule and a <a href="https://www.newyorkfed.org/press" rel="noopener noreferrer nofollow">monthly acquisition plan</a> announcement before the end of Quantitative Tightening.</p>
<p><strong>The changes enhance</strong> reserves' balance sheet flexibility due to a zero percent risk weight under the Liquidity Coverage Ratio (LCR), surpassing the role of short-term Treasury securities. Park refers to reserves as <strong>"perfect money,"</strong> contrasting with Treasury securities deemed <strong>"near-money."</strong></p>
<blockquote>
 Jeff Park, Chief Investment Officer, ProCap BTC LLC, "Although labeled as 'reserve management,' [the Federal Reserve's program] essentially still [is] QE, just upgraded from 'quantitative easing' to 'qualitative easing.' ... stablecoins are the most pressing 'currency quality' issue at present, which is why cryptocurrencies are simply not going to disappear." <a href="https://pomp.substack.com/p/jeff-park-joins-procap-as-chief-investment" rel="noopener noreferrer nofollow">Read more</a>
</blockquote>
<h2 id="stablecoins-spell-new-era-amid-reserve-policy-changes">Stablecoins Spell New Era Amid Reserve Policy Changes</h2>
<p><strong>Did you know?</strong> In the latest shift to "qualitative easing," emphasis on stablecoins signifies their critical role. The trend parallels past transitions where innovations like Bitcoin prompted regulatory evolutions in monetary systems.</p>
<p>According to CoinMarketCap, Bitcoin (BTC) currently trades at $92,211.10 with a market cap of formatNumber(1840624259865.88, 2), representing a market dominance of 58.73%. Over the past 90 days, Bitcoin's price declined by 20.41%. Trading volume decreased 15.20% over the last 24 hours, highlighting market fluctuations.</p>
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0432-UTC-on-December-12-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0432-UTC-on-December-12-2025file.jpeg" alt="bitcoin-daily-chart-4971" class="wp-image-382924"> </a>
 <figcaption class="wp-element-caption">
  Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 04:32 UTC on December 12, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
 </figcaption>
</figure>
<p><strong>Coincu research indicates</strong> that potential outcomes include a reevaluation of financial systems concerning reserve definitions as <strong>"qualitative easing"</strong> could prompt new regulatory approaches. Stablecoin backing further suggests evolving technological parallels as traditional definitions adapt. This development suggests potential adjustments akin to <a href="https://www.federalreserve.gov/supervisionreg/resolution-plans/morgan-stanley-1g-20250701.pdf" rel="noopener noreferrer nofollow">Morgan Stanley's Resolution Plan for 2025 Compliance</a>.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure> <a href="https://coincu.com/uncategorized/fed-reserve-qualitative-easing-effect/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Federal Reserve Policy Shift: From Quantitative to Qualitative Easing

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