Treasury Secretary Urges Fed to Investigate Mortgage Fraud Claims

Scott Bessent, U.S. Treasury Secretary, has called for an internal review of the Federal Reserve over mortgage fraud allegations against Fed Governor Lisa Cook, urging transparency from Chairman Jerome Powell.

The call for review raises questions about institutional trust and could impact market stability, particularly affecting BTC, ETH, and USD-backed stablecoins sensitive to U.S. policy shifts.

Treasury’s Call for Fed Accountability Amid Fraud Allegations

U.S. Treasury Secretary Scott Bessent called for an internal review by the Federal Reserve, focusing on mortgage fraud allegations against Fed Governor Lisa Cook. In light of these claims, Bessent encourages Chairman Jerome Powell to conduct a thorough examination of the institution.

This request highlights the need for transparency within the nation’s primary financial regulatory body. Such actions aim to preserve high trust between the Federal Reserve and the public. If substantiated, these allegations could potentially impact the credibility of the Fed’s governance. The involvement of top officials makes it crucial for the institution to demonstrate accountability and restore confidence.

Market reactions reflect increased volatility, as major players like BTC and ETH respond to regulatory news. Treasury Secretary Bessent’s call might further influence the Federal Reserve’s policy directions, with experts suggesting that transparency is paramount at this juncture. The absence of direct statements from Jerome Powell and Lisa Cook leaves industry observers watching closely for further developments.

Crypto Market’s Sensitivity to Regulatory Actions

Did you know? The last major Federal Reserve probe in 2016 resulted in heightened market sensitivity, influencing crypto price swings of 3-7% within hours of announcements.

Bitcoin (BTC) currently trades at $112,147.33, with a market cap of $2.23 trillion, per CoinMarketCap. Despite a minor 0.96% rise over 24 hours, BTC experienced a 4.90% decline over the past month. Its trading volume decreased 21.33% to $61.89 billion, underscoring potential volatility.

Analysts from Coincu note the consequences of regulatory scrutiny, suggesting this could lead to cautious market behavior, affecting short-term capital flow. Historical patterns suggest ongoing reviews could influence broader financial markets, as stakeholders closely monitor developments.