Fed’s Waller says crypto hype ‘fading’ with TradFi tie-ins

Federal Reserve Governor Christopher Waller stated that the intense hype surrounding the cryptocurrency market appears to be ‘fading’ as the industry increasingly intersects with traditional finance (TradFi). Speaking at a recent financial industry event, Waller noted that the speculative fervor that once defined the digital asset space is being replaced by a more sober assessment of the technology’s actual utility and systemic risks. He highlighted that while blockchain technology offers innovative possibilities for payments and settlements, its integration with established financial institutions necessitates stricter regulatory compliance and robust risk management. Waller cautioned that the ‘froth’ in the market is cooling, and he emphasized the critical importance of safeguarding the traditional banking system from the volatility inherent in unbacked crypto assets. These comments reflect a shifting regulatory perspective where cryptocurrency is no longer viewed as an isolated ecosystem, but as a developing component of the broader financial infrastructure that requires clear oversight to ensure economic stability.

Source: Fed’s Waller says crypto hype ‘fading’ with TradFi tie-ins