The post From Quantitative to Qualitative Easing appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve’s new purchasing program labeled as “qualitativeThe post From Quantitative to Qualitative Easing appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve’s new purchasing program labeled as “qualitative

From Quantitative to Qualitative Easing

2025/12/12 12:40
Key Points:
  • The Federal Reserve’s new purchasing program labeled as “qualitative easing.”
  • Jeff Park highlights reserves as “perfect money.”
  • Stablecoins emphasized as crucial to cryptocurrency persistence.

Jeff Park, former Morgan Stanley NFA trader, asserted on X platform that the Federal Reserve’s reserve management program essentially represents upgraded quantitative easing, termed as ‘qualitative easing.’

This perspective underscores cryptocurrencies’ durability, highlighting stablecoins’ critical currency quality role amid the Federal Reserve’s evolving monetary strategies.

Federal Reserve’s “Qualitative Easing” Sparks Crypto Market Reaction

The Federal Reserve introduced a purchasing program described by Jeff Park as “qualitative easing” rather than traditional reserve management. This follows a sudden relaxation of the Supplementary Leverage Ratio (SLR) rule and a monthly acquisition plan announcement before the end of Quantitative Tightening.

The changes enhance reserves’ balance sheet flexibility due to a zero percent risk weight under the Liquidity Coverage Ratio (LCR), surpassing the role of short-term Treasury securities. Park refers to reserves as “perfect money,” contrasting with Treasury securities deemed “near-money.”

Stablecoins Spell New Era Amid Reserve Policy Changes

Did you know? In the latest shift to “qualitative easing,” emphasis on stablecoins signifies their critical role. The trend parallels past transitions where innovations like Bitcoin prompted regulatory evolutions in monetary systems.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $92,211.10 with a market cap of formatNumber(1840624259865.88, 2), representing a market dominance of 58.73%. Over the past 90 days, Bitcoin’s price declined by 20.41%. Trading volume decreased 15.20% over the last 24 hours, highlighting market fluctuations.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 04:32 UTC on December 12, 2025. Source: CoinMarketCap

Coincu research indicates that potential outcomes include a reevaluation of financial systems concerning reserve definitions as “qualitative easing” could prompt new regulatory approaches. Stablecoin backing further suggests evolving technological parallels as traditional definitions adapt. This development suggests potential adjustments akin to Morgan Stanley’s Resolution Plan for 2025 Compliance.

Source: https://coincu.com/markets/fed-reserve-qualitative-easing-effect/

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