Fed Governor Waller: “Deadlock in talks on regulatory clarity for digital assets… Trump-driven optimism also fading”

Christopher Waller, a governor of the U.S. Federal Reserve (Fed), said discussions in the U.S. Congress on regulations for digital assets (cryptocurrencies) have fallen into deadlock, and that pro-crypto optimism that had persisted until recently is also weakening.

According to Walter Bloomberg, a financial news flash account, on the 9th (local time), Waller said in recent remarks that “Congress is failing to secure regulatory clarity for digital assets,” adding that “discussions on digital-asset-related legislation have effectively stopped.”

He also commented on the Fed’s so-called “skinny accounts” initiative, saying that “the plan did not prevent legal disputes.” Skinny accounts refer to a proposal that would allow banks, fintech firms, and digital-asset companies limited access to the Fed’s payment system, and it is currently under review within the Fed.

Waller assessed that political expectations surrounding the digital-asset industry are also weakening compared with before. He noted that “the digital-asset boom linked to President Donald Trump is gradually cooling,” suggesting that it is difficult for the market to keep moving on policy expectations alone.

The digital-asset market structure bill, the CLARITY Act, aims to define the legal nature of digital assets and clarify supervisory jurisdiction between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, legislative discussions have failed to make progress amid partisan differences and conflicting interests.

Market participants view the remarks by a senior Fed official as another confirmation of the stalled state of regulatory discussions on digital assets. As regulatory clarity is delayed, attention is turning to whether there will be a shift in market sentiment that has relied on policy expectations.