Kashkari: Crypto Is ‘Basically Useless’
Analysis
Price Impact
LowMinneapolis fed president neel kashkari's reiteration that crypto is 'basically useless' is not new information. he has held and publicly expressed this extreme bearish view for years, consistently calling crypto a 'farce,' 'garbage dumpster,' and '95% fraud.' the market has largely priced in or become accustomed to his stance, meaning this specific news item is unlikely to cause significant immediate price movement.
Trustworthiness
MedAs a federal reserve president, kashkari holds an influential position. however, his views on crypto have been consistently and extremely negative for years, often proving to be premature or exaggerated in the face of crypto's continued growth and adoption. while his opinion represents a segment of traditional finance, the market tends to discount his particularly unshakeable bearishness.
Price Direction
NeutralWhile kashkari's comments are fundamentally bearish, they do not introduce any new regulatory threats, policy changes, or previously unknown sentiments. his stance is well-documented and predictable, thus unlikely to serve as a fresh catalyst for a price decline. market reaction, if any, will likely be minimal and fleeting.
Time Effect
ShortThe impact of these comments is likely confined to the very short term, primarily affecting sentiment among those who pay close attention to central bank rhetoric. given the lack of novelty and kashkari's long-standing position, any market reaction will quickly dissipate.
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Cover image via www.flickr.com Read U.TODAY on Google News One powerful voice at the Federal Reserve remains entirely unmoved by crypto's progress: Minneapolis Fed President Neel Kashkari. Advertisement In his latest comments, Kashkari reiterated his long-standing view that cryptocurrency is "basically useless" for consumers. Unshakeable bearishness For years, Kashraki has argued that the crypto industry has failed to demonstrate a legitimate use case in an advanced economy. HOT Stories Kashkari: Crypto Is ‘Basically Useless’ U.Today Crypto Digest: XRP Jumps 1,122% in Liquidation Imbalance, Peter Brandt Predicts Historic Bitcoin Breakout, Ethereum Holder Bitmine Hits $14 Billion Milestone Morning Crypto Report: 145,214,184,927 Shiba Inu (SHIB) Mystery Stuns Robinhood, $30 Million XRP Whale Turns into Aggressive Short Seller, $96,000 Bitcoin Triggers 1,000% Liquidation Imbalance BREAKING: Ripple Secures 'Massive' EU License Win In 2018, he called the cryptocurrency market a "farce" and criticized the lack of barriers to entry. In 2020, he told the audience that the crypto market was a "giant garbage dumpster." He praised the SEC for finally cracking down on the industry, arguing that investors were being "fleeced for tens of billions of dollars. Advertisement You Might Also Like Wed, 01/14/2026 - 05:50 Short Squeeze Triggers Crypto Rally By Alex Dovbnya Kashkari’s most famous critique came in August 2021. Back then, he famously dismissed the entire sector as "95% fraud, hype, noise and confusion" while speaking at the Pacific Northwest Economic Regional annual summit. When the market eventually crashed in 2022, he doubled down. In May 2022, he told Reuters that the downturn was a positive development, arguing, "Maybe it's better crypto is imploding now than 5 years from now when more people's money would have been at risk." Advertisement In October 2024, he made waves by stating: "Very few transactions are actually happening on crypto... unless people are buying drugs or other illegal activities." #Federal Reserve #Neel Kashkari #Cryptocurrency Adoption