Fed governor Waller backs stablecoins, good news for crypto

As the market tries to decipher complex policy signals from the Federal Reserve (Fed), one of the most influential members of the Board of Governors, Christopher Waller, has made important statements clarifying his views. His comments were not only "dovish" (accommodative) on monetary policy but also contained very positive remarks about stablecoins.

1. A "green light" signal for stablecoins

Notably, when asked about the role of stablecoins, Waller stated that they bring "competition to the payment system" but that he does "not see them as a threat." This is one of the most crypto-friendly comments ever made by a high-ranking Fed official. It shows an open-minded perspective, viewing stablecoins as an innovation on the blockchain platform that can coexist and compete healthily with the traditional financial system.

2. A forceful argument for a july rate cut

More importantly for financial markets, Waller presented a detailed and strong argument in favor of the Fed beginning to cut interest rates as early as July. He argued that the economy is now facing more risks and that monetary policy needs to be at a "more neutral" level, leaning toward an easing stance.

He warned that "delaying rate cuts could increase the risk of having to take drastic measures in the future." According to him, an early cut in July would "create policy space," allowing the Fed the flexibility to hold rates steady in subsequent meetings. He also emphasized that the Fed "should not wait until there is a problem in the labor market to act."

3. "Looking through" tariff-driven inflation

Regarding the issue of inflation, Waller acknowledged that tariff policy will push inflation higher in the short term, but he believes this effect will fade next year. The key point in his argument is that without the influence of tariffs, actual inflation would be close to the Fed's 2% target. This implies he is willing to "look through" the temporary noise caused by trade policy.

The comments from Governor Waller are seen as an extremely positive macro signal for digital assets like Bitcoin. A more accommodative stance from the Fed, combined with a recognition of the role of stablecoins, creates a favorable environment for the growth of the entire crypto market.