Waller: crypto hype fading as ties to traditional finance grow

Federal Reserve Governor Chris Waller said the crypto hype that followed US President Donald Trump’s election victory has begun to wane as the market becomes more entwined with traditional finance. Speaking at a conference on Monday, he said 'some of that's kind of fading' and that 'a lot of it has been brought into the mainstream finance.' He suggested mainstream finance firms entering crypto had to adjust their risk positions, prompting sell-offs.

Waller also argued that Congress's failure to quickly pass the crypto market structure bill had 'put people off' by leaving uncertainty about how products are regulated. Waller brushed off the recent market drop as 'part of the game' with crypto: 'You get in, you make some money, you might lose some money — that's the nature of the beast.' Bitcoin has fallen 45% from its peak of $125,000 in October and is trading around $69,500 after a brief crash to under $60,000 on Friday.

United States

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