Fed's Waller: Trump crypto hype cools, TradFi entry drives sell-off

Federal Reserve Governor Christopher Waller said on Feb. 9 that the enthusiasm in the crypto market that followed President Donald Trump's election is now cooling. According to Cointelegraph, Waller identified the recent sell-off as being primarily caused by traditional financial institutions entering the crypto space and adjusting their risk positions. He also pointed out that Congress's failure to promptly pass legislation on crypto market structure has heightened regulatory uncertainty and dampened investor sentiment. Regarding price volatility, Waller commented that it is natural for prices to rise and fall. Meanwhile, he announced that the Fed plans to introduce a "payment accounts" system this year. The system is designed to grant fintech and crypto companies limited access to the central bank's payment infrastructure. Unlike standard master accounts, these payment accounts will not accrue interest and will be subject to balance limits.