tl;dr
Minneapolis Federal Reserve President Neel Kashkari dismissed crypto as the currency of criminal enterprises, stating that very few transactions occur in crypto, except for illegal activities. This reflects his ongoing resistance to crypto, despite increasing institutional adoption. Proponents of th...
Minneapolis Federal Reserve President Neel Kashkari dismissed crypto as the currency of criminal enterprises, stating that very few transactions occur in crypto, except for illegal activities. This reflects his ongoing resistance to crypto, despite increasing institutional adoption. Proponents of the cryptocurrency industry criticized his remarks, emphasizing the legitimacy of crypto projects and their anti-money laundering policies. The Federal Reserve has the authority to issue restrictions on crypto banking and a central bank digital currency.
Although only 17% of American adults reported owning digital assets in 2023, institutional adoption has accelerated, with 80% of institutional investors planning to increase their investments in digital assets. Institutional adoption of crypto, however, has picked up in recent months, accelerated by the approval of spot bitcoin and ether ETFs in the U.S. earlier this year. Roughly 80% of institutional investors and wealth managers reported planning to increase their investments in digital assets in the coming months, according to a 2024 poll from Europe-based investment manager Nickel Digital.
The comments made by Minneapolis Federal Reserve President Neel Kashkari at a town hall in Wisconsin have sparked strong reactions within the crypto industry. Kashkari's assertion that very few transactions occur in crypto, except for illegal activities, was met with criticism from crypto industry supporters, who emphasized the sound anti-money laundering policies in legitimate crypto projects. This friction underscores the growing tension between regulatory authorities and the cryptocurrency industry, as institutional adoption of digital assets continues to rise.