"Federal Reserve Governor Christopher J. Waller downplayed risks from bitcoin and broader crypto markets on Monday, arguing that digital assets remain largely disconnected from the traditional financial system even as the technology behind them moves into the mainstream. Speaking at an event hosted by the Global Interdependence Center, Waller framed crypto markets as an extension and competition of everyday commerce rather than an entirely new phenomenon."
"His comments come as crypto markets continue to grapple with regulatory uncertainty in Washington and recurring bouts of volatility that have shaped investor sentiment for years. While bitcoin has become more embedded in institutional portfolios, Waller suggested that price swings remain part of the market's character rather than a systemic concern. "Ups and downs in the crypto world have become so common they actually have a name for them: winters," he said. "It's part of the game.""
Digital assets remain largely disconnected from the traditional financial system, limiting immediate spillover risks to banks and the payments system despite increased institutional adoption. Blockchain technology is moving into mainstream use while crypto markets act as extensions and competitors to everyday commerce rather than forming wholly new financial systems. Regulatory uncertainty in Washington and recurring bouts of volatility continue to shape investor sentiment. Price swings in bitcoin are part of the market's character with historical precedent, and recent declines look less dramatic when viewed through a longer lens, making sharp crashes within crypto less likely to trigger systemic stress in traditional finance.
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