{"id":75402,"date":"2026-07-14T16:33:43","date_gmt":"2026-07-14T16:33:43","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-crypto-is-on-its-own\/"},"modified":"2026-07-14T16:33:43","modified_gmt":"2026-07-14T16:33:43","slug":"fed-chair-warns-crypto-is-on-its-own","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-crypto-is-on-its-own\/","title":{"rendered":"Fed Chair Warns Crypto Is on Its Own"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Fed Chair Kevin Warsh told Congress on July 14, 2026 the Fed won\u2019t bail out crypto or stablecoins.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Rep. Brad Sherman pressed Warsh on a potential run in crypto markets during the House hearing.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Warsh holds the Fed rate at 3.5% to 3.75% and will also appear before the Senate on Wednesday.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>Warsh <a href=\"https:\/\/www.youtube.com\/watch?v=ZO9HbvGe7cE\" target=\"_blank\" rel=\"noopener noreferrer\">appeared<\/a> before the committee for the Fed\u2019s Semi-Annual Monetary Policy Report, a hearing known as the Humphrey-Hawkins testimony. He is also scheduled to appear before the Senate Banking Committee on Wednesday.<\/p>\n<h2>\u2018We Do Not Want to Be in the Bailout Business\u2019<\/h2>\n<p>The exchange on <span>crypto<\/span> came during questioning from Rep. Brad Sherman, D-Calif., a longtime skeptic of digital assets who sits on the committee. Sherman asked Warsh directly whether the Fed would extend support to <span>cryptocurrency<\/span> or <span>stablecoin<\/span> markets the way it backstopped money market funds during the 2008 financial crisis.<\/p>\n<p>Warsh opened his answer by pointing to his own history with that crisis. \u201cI still have the scars from the 2008 financial crisis,\u201d Warsh said. \u201cWe all carry the scars from the extraordinary efforts that my colleagues and I undertook under Chairman Bernanke\u2019s leadership. That is not something we want to repeat.\u201d<\/p>\n<p>Sherman pressed further, asking Warsh to rule out a rescue of <a href=\"https:\/\/news.bitcoin.com\/why-brazils-central-bank-wants-to-classify-stablecoins-as-electronic-monetary-instruments\/\">stablecoins<\/a> and <span>cryptocurrency<\/span> specifically. Warsh answered in broader terms instead of naming the sector directly. Warsh told the panel:<\/p>\n<blockquote>\n<p>\u201cWe do not want to be in the bailout business, full stop.\u201d<\/p>\n<\/blockquote>\n<p>Sherman noted that the Fed did step in for money market funds during the 2008 crisis and asked whether a similar shock in <span>crypto<\/span> markets would prompt the same response. Warsh held his position while leaving room for the Fed to act on the margins.<\/p>\n<p>\u201cWe\u2019re going to do everything we can to mitigate those sorts of extraordinary risks, if and when they arise over the next four years,\u201d Warsh told Sherman. \u201cWe want to be in a position where we\u2019re not bailing out anybody, including <span>crypto<\/span>.\u201d<\/p>\n<p>Sherman told Warsh he had not fully answered the question, then moved on to bank capital rules. He also flagged Kraken\u2019s <a href=\"https:\/\/news.bitcoin.com\/kraken-parent-payward-targets-occ-charter-to-unlock-institutional-digital-asset-custody\/\">application<\/a> with the Federal Reserve Bank of Kansas City as a concern tied to nonbank access to the payment system, a sign that lawmakers are watching how <span>crypto<\/span> firms plug into traditional banking infrastructure.<\/p>\n<h2>Warsh Calls Inflation \u2018a Choice\u2019<\/h2>\n<p> <span>Inflation<\/span> dominated much of the hearing. Warsh described <span>inflation<\/span> as a choice rather than an unavoidable outcome and noted the Fed\u2019s rate-setting committee has no tolerance for price gains staying elevated. \u201cThe members of our committee have no tolerance for persistently elevated <span>inflation<\/span>,\u201d Warsh stated. \u201cAnd we share a resolute commitment to restoring price stability.\u201d<\/p>\n<p>The Fed held its benchmark rate at a range of 3.5% to 3.75% at its June meeting, Warsh\u2019s first as chair. He told lawmakers the labor market looks balanced, with low unemployment, few layoffs and steady wage growth, meaning the Fed\u2019s <span>inflation<\/span> and employment goals are not currently working against each other. Warsh added that sustained progress on <span>inflation<\/span> would eventually support lower long-term yields.<\/p>\n<figure id=\"attachment_831108\" aria-describedby=\"caption-attachment-831108\" style=\"width:1938px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-831108\" class=\"wp-caption-text\">Image source: Polymarket<\/figcaption><\/figure>\n<p>On Tuesday afternoon, July 14, <span>prediction market<\/span> bettors were pricing in the possibility that a rate hike could still materialize this year. <a href=\"https:\/\/srt.bitcoin.com\/polymarket-newsart\" target=\"_blank\" rel=\"noopener noreferrer\">Polymarket<\/a>\u2018s event on the subject assigns a <a href=\"https:\/\/polymarket.com\/event\/fed-rate-hike-in-2026\/fed-rate-hike-in-2026\" target=\"_blank\" rel=\"noopener noreferrer\">52% probability<\/a> that the Fed will raise the benchmark rate in 2026. <a href=\"https:\/\/srt.bitcoin.com\/kalshi-may\" target=\"_blank\" rel=\"noopener noreferrer\">Kalshi<\/a>\u2018s market tracking the same question puts the <a href=\"https:\/\/kalshi.com\/markets\/kxfedhike\/next-fed-rate-hike\/fedhike\" target=\"_blank\" rel=\"noopener noreferrer\">odds at 48%<\/a>. Polymarket\u2019s probability declined from 66% yesterday to the current 52%, while <span>Kalshi<\/span>\u2019s odds were above 60% on July 13.<\/p>\n<h2>AI Buildout Fuels Business Investment<\/h2>\n<p>Warsh pointed to business investment as the standout feature of the current economy. Overall equipment investment rose about 8% over the year ending in the first quarter, driven largely by data center construction tied to artificial intelligence. High-tech spending within that category grew nearly 25% on a four-quarter basis. \u201cIt seems inevitable that what is now called \u2018AI investment\u2019 will soon be called just \u2018investment,&#8217;\u201d Warsh said, adding that the Fed is watching what the buildout means for <span>inflation<\/span> and the labor market.<\/p>\n<h2>Five Task Forces Take a Fresh Look at Fed Practices<\/h2>\n<p>Warsh also outlined five task forces he created to examine the Fed\u2019s practices from the ground up. The groups cover Fed communications, balance sheet policy, economic data sources, the impact of new technology on productivity and jobs, and the frameworks used to think about <span>inflation<\/span>. He said the teams are starting from \u201ca blank sheet of paper\u201d and will report internally to all 19 Fed policymakers before any public findings are shared.<\/p>\n<p>Fed independence was another theme of the hearing. Warsh emphasized the central bank\u2019s separation from political pressure, a point Sherman echoed in his opening remarks when he credited the Fed\u2019s independence with helping prevent deeper <span>inflation<\/span> damage in recent years. The testimony landed on the same day as a fresh consumer price index reading and a batch of second-quarter bank earnings, giving investors and lawmakers several data points to weigh at once. <a href=\"https:\/\/news.bitcoin.com\/new-fed-chair-kevin-warsh-ditches-rate-signals-bitcoin-slides-as-nasdaq-bounces-1-5\/\">Warsh<\/a> avoided offering explicit guidance on the Fed\u2019s next rate move, consistent with his approach since taking over as chair.<\/p>\n<h2>What This Means for Crypto Markets<\/h2>\n<p>For <span>crypto<\/span> markets, the message from Warsh was one of clear boundaries rather than open hostility. He did not signal opposition to digital assets broadly, and reporting has noted his relatively crypto-fluent background compared with past Fed chairs, along with disclosed crypto-related investments. But he made plain that market stress in the sector will not be met with the kind of <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a> facilities the Fed extended to money market funds in 2008.<\/p>\n<p> <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin<\/a> continued its advance on Tuesday, reaching an intraday high of $64,913 by 11:30 a.m. EDT. U.S. equities also extended their recovery, adding to the broader rebound across risk assets. Sherman also used part of his time to press Warsh on bank capital requirements, asking whether 2019-era standards were adequate or should be raised under the current reproposal.<\/p>\n<p>Warsh stressed that a capital rule is out for public comment and he intends to review the responses before forming a judgment, pointing to strong capital ratios, <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-liquidity\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">liquidity<\/a>, supervision, and market discipline as the pillars of a sound financial system.<\/p>\n<p>Warsh\u2019s testimony sets the tone heading into his Senate Banking Committee appearance on Wednesday, where lawmakers are likely to press him further on both <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-inflation\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">inflation<\/a> and the Fed\u2019s posture toward digital assets.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/we-do-not-want-to-be-in-the-bailout-business-fed-chair-warns-crypto-is-on-its-own\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Fed Chair Kevin Warsh told Congress on July 14, 2026 the Fed won\u2019t bail out crypto or stablecoins. Rep. Brad Sherman pressed Warsh on a potential run in crypto markets during the House hearing. Warsh holds the Fed rate at 3.5% to 3.75% and will also [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":75403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75402"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75402"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75402\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75403"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}