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COINTURK NEWS > Cryptocurrency News > Fed’s Kashkari Criticizes Crypto and Stablecoins as Bitcoin Slips
Cryptocurrency News

Fed’s Kashkari Criticizes Crypto and Stablecoins as Bitcoin Slips

In Brief

  • Fed’s Kashkari delivered tough criticism of crypto assets and stablecoins during market turbulence.

  • He remains optimistic on AI but urges caution in adoption within the Fed.

  • Bitcoin neared $65,000 as investor worries mounted over market and policy uncertainty.

Fatih Uçar
Fatih Uçar 2 months ago
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Minneapolis Federal Reserve President Neel Kashkari, who holds voting power on interest rate decisions this year, delivered candid remarks on stablecoins, artificial intelligence, and cryptocurrencies as markets watched for signals on monetary policy. His statements reflected continuing skepticism, and even open resentment, towards digital assets within the Fed. Meanwhile, Bitcoin traded just below the $66,000 mark as U.S. equities opened lower in line with expectations.

Contents
Fed’s Position on Crypto Faces Renewed ScrutinyLabor Market Remains Key as AI Horizons Expand

Fed’s Position on Crypto Faces Renewed Scrutiny

Kashkari’s open remarks depart from the measured tone that has typically characterized the Fed’s public statements on cryptocurrencies since the Trump era. While previous comments have often been cautious or deliberately vague, Kashkari did not mince words, asserting that cryptocurrencies are “completely useless.” His direct approach signals frustration with crypto’s persistent presence in public and policy debates.

Labor Market Remains Key as AI Horizons Expand

Beyond digital assets, Kashkari addressed the resilience of the U.S. labor market, noting only modest weakening in recent months. He emphasized that both of the Fed’s mandates—controlling inflation and promoting employment—are near their targets. Kashkari encouraged caution in interpreting labor trends, underscoring that business hiring data indicate ongoing strength but warrant prudence as the central bank weighs its path forward.

“The labor market has remained remarkably resilient, easing only slightly yet still ranging from good to quite strong. The Fed is close to meeting both its mandates, and interest rates are near neutral levels. Reports from businesses about hiring suggest some caution is necessary when assessing the labor market’s strength. The Fed remains committed to making the best decisions based on data and analysis, aiming to minimize distractions,” Kashkari explained.

He also touched on the country’s persistent housing shortage, pointing out that while interest rates might play a role, other factors—including zoning policies, rising material costs, and higher labor expenses—contribute significantly to the problem.

On the topic of artificial intelligence, Kashkari voiced measured optimism. He suggested that nearly all businesses are starting to recognize the benefits of AI, predicting that it could significantly boost productivity over the next five to ten years. However, he emphasized that the Fed is taking a cautious approach to adopting AI internally, particularly through strict measures guarding access to sensitive data.

“I’m optimistic about artificial intelligence. Just about every business is seeing its advantages, and AI could drive substantial productivity gains in the next five to ten years,” Kashkari commented. “Within the Fed, we are taking a prudent approach, especially when it comes to limiting access to confidential information.”

Kashkari was blunt in his critique of cryptocurrencies, describing them as “completely useless.” He also questioned the supposed advantages of stablecoins, arguing that it’s unclear what they meaningfully offer beyond what existing digital payment platforms like Venmo already provide.

“When it comes to crypto, I think it’s totally useless,” Kashkari continued. “As for stablecoins, it’s not clear what they can do that current payment apps like Venmo don’t already enable.”

The convergence of the U.S. stock market’s opening and Kashkari’s statements sent Bitcoin drifting down toward $65,000—a new low for the day. Bitcoin’s pattern of recording deeper daily lows over the last three sessions has heightened concerns that its price could be on track for an extended retreat to $50,000 if the downward trend continues.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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Fatih Uçar 19 February, 2026 - 5:49 pm 19 February, 2026 - 5:49 pm
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