No Change on Interest Rates, Favors Stablecoins
Today, Fed Chairman Jerome Powell told the Senate Banking Committee that he is in no hurry to lower interest rates. President Trump is excited by high cuts inflationbut Powell was still unmoved.
He also expressed support for the comprehensive new Stablecoin Regulations, ending anti-Criputo campaign. Although some in the industry want to lower interest rates, his statements are generally bullish.
Stable interest rates may be bullish on cryptocurrencies
Fed Chairman Jerome Powell and One of the most powerful financial regulators in the United Statestestified today before the Senate Banking Committee. Powell has recently Advantageous approach to the crypto marketAnd his Comment Touched some key areas.
Most urgently, Powell was not interested in lowering U.S. interest rates.
Fed Lower U.S. interest rates by 50 basis points last Septemberthis has had a bullish impact on the cryptocurrency market. However, Positive cuts may have negative effects,he October slows down future cuts.
Today, despite the massive cuts in President Trump’s inflation-related demands, Powell said the Fed “doesn’t need to rush.”
As Powell knows very well, cutting speed can be a double-edged sword. On the one hand, small cuts have restricted borrowing, which may slow capital flows into the cryptocurrency market.
On the other hand, strong cuts reflect market chaos and may encourage investors to take a conservative approach, especially in assets on risky risks like Bitcoin. This intermediate course will remain the same.
However, institutional investors may transfer funds to cryptocurrencies until future policy adjustments provide a clearer signal. This may lead to a cautious market reaction.
The institutional market has shown this cautious mindset today, Bitcoin ETF sees the first weekly net outflow In 2025.
Federal Reserve Chairman Stable Regulations
Powell also talked about some key areas outside of it. For example, stable regulations and anti-Creputo revoked efforts. have Several efforts to compile Stablecoin policies in the United Statesbut none of them have been implemented.
This concern is particularly important because The EU has recently adopted its own framework. Powell fully supports this.
“The Fed certainly supports efforts to create a regulatory framework around Stablecoins. They may have a huge future in consumers and businesses, and it is important that stablecoins develop in a way that protects consumers and savers, which has a regulatory framework. ” Powell said.
Additionally, Powell supports clearer stability guidelines, but he agree and The crypto industry’s hostility to US CBDC.
Powell’s comments on some topics usually seem to be consistent with industry opinions. In addition to slowing down the speed and stabilizing the regulations, he also wants to fighting Operations Choke Point 2.0 and other revocation plans.
“My colleagues and I are increasingly shocked by the case that seems to be breaking out. We are determined to rethink it,” Powell said.
Congress is Intensifying investigations are currently Operational Obstacle Point 2.0 and FDIC Published a batch of 175 files on the topic.
This overwhelming evidence clearly convinced Powell that he would use his influence in the Fed to fight further revocation efforts.
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