Federal Reserve Governor Christopher Waller has attributed the recent cryptocurrency market sell-off to the entry of traditional financial institutions (TradFi) and ongoing regulatory uncertainty. In a policy address, Waller noted that the initial post-election enthusiasm has waned as major banks, hedge funds, and asset managers adjust their risk positions, leading to increased sell-side pressure. This shift marks a transition from retail-driven speculation to institutional portfolio management, introducing new volatility patterns. Waller also highlighted the impact of Congress's failure to pass comprehensive crypto legislation, which has created a regulatory vacuum and heightened uncertainty. This environment has made institutional investors cautious, limiting further investment and prompting premature exits. Additionally, Waller announced the Federal Reserve's plan to introduce a new "payment accounts" system, granting fintech and crypto firms limited access to the Fed's payment infrastructure, aiming to integrate innovative financial players into the traditional system while maintaining stability.