No Cryptocurrency Bailouts: FRB Chair Reaffirms No Bailing Out

FRB Chair Kevin Waller testified before Congress that there would be no bailouts for the cryptocurrency industry, even if it faces a crisis. This was his first appearance as FRB Chair, and he emphasized the Federal Reserve's stance on avoiding bailout operations.

When asked about the response to a stablecoin issuer failure and subsequent bank run, Waller stated that 'We do not want to engage in bailout operations; that is the crux of the matter.' He added that they will mitigate extreme risks but won't bail out anyone, including cryptocurrencies.

The FRB Chair has experience with crisis response from his past role during the 2008 financial crisis. However, he avoided specific references to how far the Fed might activate its emergency lending authority in the future.