Fed Cuts Rates by 25 bps as Crypto Eyes Liquidity Boost

The Federal Reserve lowered interest rates by 25 basis points on Wednesday, setting the federal funds range between 4% and 4.25%. The 11-1 FOMC vote followed months of pressure from President Trump, who demanded sharper cuts and criticized Chair Jerome Powell.

Officials cited slower economic growth, moderating job gains, and persistent inflation in their statement, while signaling two additional cuts before year-end. The Fed noted unemployment edged higher but remained low, underscoring balancing risks between labor market softening and inflationary persistence.

Lower rates often drive capital toward alternative assets, and analysts said liquidity injections could bolster trading in bitcoin, ether, and stablecoins. Kraken’s Thomas Perfumo warned the next 100 basis points may matter more for asset prices than the previous 100.

Bitcoin traded near $116,000 after the announcement, down 0.6% daily, while Ethereum ticked higher to $4,491. Bitwise CIO Matt Hougan predicted that conditions such as rate cuts, ETF inflows, and stablecoin adoption could set up crypto markets for a potential year-end rally.

Trump Sues New York Times Over Meme Coin

President Donald Trump filed a $15 billion defamation lawsuit accusing the New York Times of harming his reputation. The complaint alleges false articles and a book damaged Trump’s Solana-based meme coin project and other business ventures. Lawyers argue the reporting was malicious and timed to undermine his companies, causing substantial economic losses.

The token debuted shortly before Trump’s inauguration, reaching a $73 billion valuation before losing nearly ninety percent. The lawsuit also cites damage to Trump Media & Technology Group, operator of Truth Social. Analysts note the case highlights Trump’s growing reliance on crypto projects like World Liberty, which have substantially boosted his personal fortune.

CME to Launch Solana and XRP Options

CME Group announced plans to launch options on Solana and XRP futures, pending regulatory review and approval. Contracts will include standard and micro-sized formats with daily, monthly, and quarterly expirations available to participants. Officials said the additions aim to expand institutional hedging tools and improve flexibility in crypto derivatives markets.

The exchange reported enormous growth in Solana and XRP futures since launch, with billions in notional volume traded. CME executives said heightened liquidity and demand justify expanding offerings, while partners welcomed deeper crypto options coverage. Market observers also watch for future spot ETFs tied to Solana and XRP, awaiting SEC decisions.

UK Regulator Seeks Input on Crypto Standards

The UK Financial Conduct Authority opened a consultation on minimum standards for crypto firms as part of regulatory reforms. Officials said the proposals mirror rules for traditional finance, covering resilience, anti-crime systems, and complaint handling requirements. Regulators argued these standards will build consumer trust, encourage innovation, and maintain competitiveness in the digital asset sector.

The initiative forms part of legislation due in 2026 that expands the FCA’s remit across crypto custody, trading, and stablecoins. Industry critics warn the approach risks over-regulation and discouraging firms from operating in the UK. Analysts said the consultation reflects Britain’s attempt to regain ground against jurisdictions like Dubai and Singapore.

Data of the Day

The Swiss Bankers Association announced UBS, Sygnum Bank, and PostFinance completed blockchain-based trials for interbank payments. The proof-of-concept introduced deposit tokens representing fiat transfers and tokenized real-world assets exchanged automatically through smart contracts. Officials emphasized the experiment marked the first legally binding bank payment conducted on a public blockchain.

Participants said smart contracts enabled verifiable processes, security, and compliance while highlighting ongoing scalability and interoperability challenges. UBS executives said the findings prove blockchain can link bank deposits with tokenized assets. Analysts believe the successful study shows traditional institutions are increasingly adopting blockchain rails to modernize payments and accelerate tokenization.

More Breaking News

• Wormhole launched a strategic W token reserve and restructured its unlock schedule to reduce sell pressure, align incentives, and boost long-term protocol stability.
• OFAC sanctioned Iranians and firms for laundering $100 million in crypto linked to oil sales, targeting wallets, brokers, and shadow banking networks.
• Ethereum treasury firm The Ether Machine filed an S-4 with the Securities and Exchange Commission to go public via merger, holding nearly 500,000 ETH in reserves.
• Circle deployed native USDC on Hyperliquid’s HyperEVM chain, investing in the platform and integrating cross-chain transfers and future validator participation options.
• Bullish secured a New York BitLicense and Money Transmission License, clearing the way for institutional crypto services across the highly regulated U.S. market.
• Movement will pivot from a sidechain to a full Layer 1 blockchain, unlocking 10,000 TPS throughput and support for staking via native validators.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.