At the Digital Asset Summit 2025 in London, a key moment captured everyone's attention when Michael Howell, the CEO of CrossBorder Capital, dropped a bombshell on US monetary policy. In a clip shared by the summit's official X account (@blockworksDAS), Howell stated, "I think that the first thing to say is there has not been QT in the US despite the headlines." This isn't just economist jargon—it's a big deal for the crypto world, especially meme tokens.

For those new to the term, Quantitative Tightening (QT) is basically the Federal Reserve's way of sucking money out of the economy by shrinking its balance sheet. It's the opposite of Quantitative Easing (QE), where the Fed pumps in cash to stimulate growth. Headlines have been buzzing about QT for months, suggesting tighter financial conditions that could cool off asset prices, including cryptocurrencies. But according to Howell, that's not the full story.

Why Howell's Take Matters for Crypto

CrossBorder Capital specializes in tracking global liquidity—essentially, how much money is sloshing around in financial systems worldwide. Howell's firm has been arguing for a while that despite the Fed's announced QT efforts, actual liquidity in US money markets hasn't really dried up. As he pointed out in similar comments back in 2023 (via X), the Fed hasn't pulled as much liquidity as the numbers suggest.

Fast-forward to 2025, and this view aligns with recent signals from Fed Chair Jerome Powell, who hinted that the end of QT might be near (Reuters). If liquidity remains abundant, it's like rocket fuel for risk assets. Stocks, bonds, and yes, cryptocurrencies, tend to thrive when there's plenty of cash chasing returns.

The Meme Token Angle: Liquidity Fuels the Fun

Meme tokens, those viral, community-driven coins like Dogecoin or newer Solana-based gems, are particularly sensitive to liquidity swings. When money is easy, speculators pile in, driving wild price pumps and creating the hype cycles we all love (or love to hate). Howell's assertion that QT hasn't truly bitten could mean we're in for more of that bullish environment.

Think about it: meme tokens aren't backed by complex tech or fundamentals—they're powered by memes, social media buzz, and FOMO. In a high-liquidity world, retail investors have more disposable cash to throw at these fun projects. Recent reports from CrossBorder Capital warn of a maturing global liquidity cycle (Roger Montgomery), but if the US isn't tightening as hard as thought, it could delay any downturn and keep the party going for meme coin enthusiasts.

The summit itself, sponsored by players like Solana (event details), underscores how institutional interest is intersecting with retail-driven assets. Solana, home to many meme token launches, benefits hugely from optimistic macro views like Howell's.

What This Means for Blockchain Practitioners

If you're building or trading in the meme token space, keep an eye on liquidity indicators from firms like CrossBorder Capital. Their Global Liquidity Index (GLI) tracks flows in over 90 economies, offering clues on when the tide might turn. For now, Howell's comments suggest the US economy isn't as constricted as headlines imply, potentially supporting higher valuations across blockchain assets.

Of course, crypto is volatile, and meme tokens even more so. But insights like this from DAS 2025 remind us that macro factors play a huge role. Stay tuned to events like this for the latest—Blockworks is defining the future of institutional crypto, and meme insiders should be right there with them.

If you're diving deeper, check out CrossBorder Capital's latest takes on X (@crossbordercap) or explore more from the summit agenda (Blockworks). What's your take on QT and meme tokens? Drop a comment below!