Federal Reserve Governor Chris Waller took to the stage in Jackson Hole, Wyoming, on Wednesday, making waves in the digital asset community with his reassuring remarks about the potential of blockchain technology. Addressing an audience at the SALT conference, Waller declared, “There is nothing to be afraid of when thinking about smart contracts, tokenization, or distributed ledgers.” His comments follow a similar endorsement from Fed Vice Chair for Supervision Michelle Bowman, marking a rare moment of optimism from top Fed officials toward the burgeoning crypto sector.
A Shift in Tone
Waller’s comments come at a time when the crypto industry is grappling with regulatory scrutiny and market volatility. As a long-time proponent of digital innovation, Waller, who was appointed by former President Donald Trump in 2020, has consistently advocated for stablecoins and other blockchain technologies. His latest speech suggests a potential pivot in how the Federal Reserve views these innovations—not as threats, but as opportunities to enhance financial systems.
“Those are just technologies, why are they so bad?” Waller mused, challenging the narrative that has often vilified digital assets due to their associations with volatility and speculative trading. “If they lead to more useful and interesting ways to do things, then we should be looking at and adopting it too.”
Exploring New Horizons
The Fed’s interest in tokenization and smart contracts isn’t just theoretical. Waller revealed ongoing discussions within the central bank about how these technologies could be integrated into existing financial frameworks. “We may never go that route as a central bank,” he admitted, “but there’s no reason we don’t explore to see what happens.” This sentiment echoes the broader industry trend, as highlighted in our recent coverage of S&P Dow Jones in talks to bring tokenized indexes to exchanges.
This exploration aligns with a broader industry trend of traditional financial institutions dipping their toes into the crypto waters. Just last month, major banks, including JPMorgan and Goldman Sachs, announced initiatives to incorporate blockchain solutions for cross-border payments and settlement processes. Such moves indicate a growing recognition of the efficiency and transparency that blockchain can offer.
A Community Divided
Waller’s remarks have sparked a lively debate among industry insiders. While some celebrate the Fed’s open-mindedness, others remain skeptical about the pace and sincerity of these explorations. “It’s encouraging to hear these words, but actions speak louder,” said Jane Liu, a blockchain analyst at CryptoInsights. “The real test will be how quickly these discussions translate into tangible policies or pilot programs.”
On the flip side, critics argue that the Fed’s cautious approach might stifle innovation. “By the time they decide to take meaningful action, the technology might have evolved beyond their current understanding,” warned Mark Davis, a fintech entrepreneur. This sentiment echoes a common concern in the crypto community—that traditional institutions may lag behind the rapid pace of technological advancements, as discussed in our analysis of Blockchain Lender Figure Technologies Preps for IPO as Tokenization Space ‘Maturing’.
The Road Ahead
As the digital asset landscape continues to evolve, Waller’s comments signal a potential shift in how policymakers engage with the industry. With the next CoinDesk Policy & Regulation event scheduled for September 10 in Washington, D.C., the crypto community will be watching closely for any indications of policy changes or new regulatory frameworks.
While Waller’s speech provides a glimmer of hope for those advocating for mainstream adoption, questions linger about the long-term implications for the industry. Will regulators embrace these technologies wholeheartedly, or will they remain cautious observers? Only time will tell.
In the meantime, crypto enthusiasts and skeptics alike can agree on one thing: the conversation is just beginning, and it’s one that could redefine the future of finance.
Source
This article is based on: Crypto Is ‘Nothing to Be Afraid of’ Says Fed Governor Chris Waller
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
