Last updated on March 31st, 2026 at 12:11 am
Federal Reserve Governor Christopher Waller says the surge of optimism that swept through the crypto market following U.S. President Donald Trump’s election victory is losing steam, as digital assets become increasingly tied to traditional finance.
Speaking at a conference on Monday, Waller said the initial excitement surrounding the new administration has cooled, largely because more mainstream financial institutions have entered the crypto space and are now reassessing their risk exposure.
FED’S WALLER: CRYPTO CLARITY STALLED, HYPE FADING
Fed Governor Christopher Waller said Congress has stalled on crypto rules, his plan for Fed “skinny accounts” hasn’t prevented lawsuits, and the crypto enthusiasm tied to Trump is fading.
— *Walter Bloomberg (@DeItaone) February 9, 2026
According to Waller, as crypto becomes embedded in conventional financial systems, it is naturally exposed to the same risk management pressures that drive sell-offs in traditional markets. He also pointed to delays in U.S. crypto legislation as another factor dampening sentiment.
Despite the recent downturn, Waller dismissed concerns about volatility, describing price swings as an unavoidable feature of the crypto market.
Market pullback ‘part of the game,’ Waller says
Waller argued that the recent decline should not be viewed as a crisis, noting that many firms entering crypto from traditional finance were simply adjusting their positions after the rally.
He said profit-taking and losses are normal outcomes in a market known for sharp cycles, adding that investors should expect volatility rather than be surprised by it.
Fed aims to launch ‘skinny master accounts’ this year
Waller also confirmed that the Federal Reserve plans to introduce its proposed “payment accounts,” commonly referred to as “skinny master accounts,” before the end of the year.
The accounts would allow fintech and crypto firms limited access to the central banking system, though with fewer privileges than the master accounts held by major banks. Under the proposal, payment accounts would not earn interest and would face balance restrictions.
The Fed recently closed its feedback period on the plan, with crypto firms largely supporting the move, while banking groups urged caution.
Waller has previously said the accounts are designed to encourage innovation while maintaining the safety of the U.S. payments system, especially as financial technology evolves rapidly. Notably, the Federal Reserve hosted a payments innovation conference on October 21, focusing on tokenization, DeFi, stablecoins, and AI.
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