CMC News

Crypto #Hype Fading With TradFi Ties, Says Fed's Waller

Federal Reserve governor Chris Waller stated Monday that cryptocurrency enthusiasm following Donald Trump's election victory has begun to fade as the market integrates more deeply with traditional finance. The official made the remarks at a payments conference while discussing recent market #volatility.

"Some of the euphoria that came into the crypto world with the current administration, some of that's kind of fading," Waller said. He attributed part of the decline to #mainstream finance firms adjusting their risk positions after increasing #crypto exposure under the Trump administration.

Waller dismissed concerns about the recent market drop, calling volatility simply "part of the game" with cryptocurrency. "Prices go up, prices go down. If you don't like it, don't get in it," he advised. $BTC has fallen 45% from its October peak of $126,000 and currently trades around $69,500 after briefly crashing below $60,000 Friday.

Congressional delays in passing crypto market structure legislation have also dampened investor sentiment, according to Waller. The lack of quick action leaves significant uncertainty about how digital asset products will be regulated. "I think there was a lot of sell-off just because firms that got into it from mainstream finance had to adjust their risk positions," he explained.

The Fed governor announced that proposed "payment accounts" for #fintech and crypto firms should launch this year. These "skinny master accounts" would provide limited access to the central banking system. The agency collected feedback on the proposal through Friday.