Neel Kashkari, President of the Minneapolis Federal Reserve and long-time critic of cryptocurrencies, recently signaled a shift in his rigid stance. Known for labeling crypto as “worthless,” “fraudulent,” and “nonsense,” Kashkari expressed a willingness to reconsider his views. “I will have an open mind,” he told CoinDesk during a conversation in New York City.
While acknowledging the need to keep an open perspective, Kashkari remains skeptical of crypto’s utility in the real economy, noting that widespread adoption is still limited. “Other than as a speculative asset, what does it actually do in the real economy?” he questioned, adding that despite over a decade of growth, crypto has yet to establish a prominent role in the traditional financial landscape.
The crypto industry could see a favorable shift with last week’s election of Donald Trump, who has promised a pro-crypto administration, including plans to replace current SEC Chair Gary Gensler, often viewed as an obstacle to crypto innovation. Reports suggest some in Trump’s circle, including Elon Musk, advocate for limiting the Fed’s power—a stance in stark contrast to the Fed’s current approach to crypto.
Federal Reserve Chair Jerome Powell, whom Trump tried to remove in 2018, recently stated that he would not step down in the upcoming administration, which is set to take office in January. With Kashkari’s softened stance and a potentially crypto-supportive administration, the coming months could bring notable changes for U.S. crypto policy.