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Christopher Waller noted a decrease in enthusiasm surrounding cryptocurrencies., 2026/02/10 12:03:07
The Chair of the U.S. Federal Reserve, Christopher Waller, indicated that the excitement surrounding cryptocurrencies, which was triggered by President Donald Trump’s election victory, is beginning to fade.
Waller explained that the cryptocurrency market is increasingly intertwining with traditional finance. He attributes the recent decline in the market to financial firms that invested in digital assets following the Trump administration’s arrival but later decided to adjust their positions.
The inability of Congress to swiftly pass legislation regarding the structure of the cryptocurrency market has deterred major investors from digital assets, as this creates uncertainty in the regulation of such products, Waller clarified.
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Nevertheless, the Fed Chair is not surprised by the downturn in the crypto market, given its significant volatility. Waller described this as an inherent “part of the game” with cryptocurrencies. Since its peak of $126,000 in October, Bitcoin has dropped by 45% and is currently trading around $68,500, having recovered from a brief dip to $60,000.
“You enter, you make money, and you can lose it — that’s the nature of the business. Prices rise, prices fall — it’s just the foundation of the industry. If someone doesn’t like that, my advice is: better not to enter the crypto market,” Waller stated.
He promised that this year the Fed will introduce specialized simplified payment accounts, through which fintech and crypto companies will be able to gain limited access to the central banking system. This is intended to facilitate their direct interaction with the Fed.
Crypto companies have supported this initiative, while traditional banks have reacted with skepticism. These special accounts will have fewer privileges: their holders will not be able to earn interest, and there will be limits on the balance of funds.
Last year, Waller proposed allowing banks to issue stablecoins pegged to the U.S. dollar to broaden global access to the dollar. Later, Waller mentioned that the regulator is exploring the possibilities of tokenization and smart contracts in the payments sector.
