Bitfury CEO Brian Brooks believes that Fed’s approach to inflation is hurting crypto

The Federal Reserve’s strategy for combating inflation, according to Brian Brooks, CEO of the cryptocurrency infrastructure provider Bitfury, is one of the causes of the current dip. Additionally, he slammed the US Securities and Exchange Commission (SEC), saying that it prefers to litigate individuals and companies over establishing adequate regulations first.

Brian Brooks claimed in a recent interview with CNBC that none of those actions are good for bitcoin or the larger cryptocurrency industry. He stated:

“We have talked about the idea that bitcoin is an inflation hedge. The more the market expects tough policy from the Fed, the more people think the Fed is going to keep an aggressive posture, and that would tend to harm Bitcoin.”

Regulation, according to him, does not imply suing people, and the SEC’s strategy over the past few years has been to sue people after they have launched a project, established a company, or listed a token, leading others to assume what the regulations were at the first place.

Inflation and the struggling world

Numerous nations have been struggling with inflation for a long now. Leading economies like the US, UK, and France have reached historic highs, while the unemployment rate in nations like Turkey is close to 80%. This has led to uncertainty and a significant fall in both the regular financial markets and the ecology surrounding cryptocurrencies. In June, Putin accused G7 nations to be the culprit for severe global inflation.

Numerous market participants have been debating the US Federal Reserve’s monetary policy over the past few years. For starters, when COVID-19 first appeared, America’s central bank began printing trillions of dollars. Although the action was favourable for markets in the short term, it also contributed to inflation reaching record high levels in 2022.

The United States’ inflation rate rose to 9.1% in June (the highest in over 40 years). The Fed made several attempts to stop it, including raising interest rates by 50 basis points. Chairman Jerome Powell stated earlier this month that they are determined to bring inflation down to 2%, even if it means incurring some “unfortunate costs.”