San Francisco Fed President: Crypto should be seen as a separate asset class

U.S. San Francisco Federal Reserve (Fed) President Mary Daly, in an interview on Yahoo Finance's Opening Bid podcast, emphasized that cryptocurrencies should be classified as a distinct asset class rather than being grouped with gold. "I see crypto as a complicated thing," Daly remarked, highlighting the asset’s multifaceted nature that requires clear definition. She explained that cryptocurrencies can function as a currency, a medium of exchange or even a stock, though they differ from gold despite sharing some similar traits. Both Daly and Fed Chair Jerome Powell agree that cryptocurrencies are not yet ready for currency status. However, Daly stressed that for crypto to achieve such status, its value must align with economic growth. Her perspective slightly contrasts with Powell’s, who, at the New York Times DealBook conference, described Bitcoin as a speculative, highly volatile digital asset akin to gold rather than the dollar, noting its limited use as a payment method or stable store of value.