Regulation
Fed Governor Says Rate Cuts Unlikely This Year, Crypto Crash To Worsen?
Federal Reserve Governor Michelle W. Bowman declared that it is premature to consider cutting interest rates in 2024. This announcement comes at a time of heightened sensitivity in both traditional and crypto markets. Moreover, the situation has intensified as key economic data releases are anticipated later this week.
Federal Reserve Governor Ditches Rate Cut Speculations
In a recent statement, Governor Bowman underscored that while there has been modest progress in controlling U.S. inflation, it remains elevated and subject to various upside risks. This perspective aligns with the Federal Reserve’s cautious approach to monetary policy amidst an uncertain economic landscape. Moreover, Bowman highlighted the necessity for the Federal Reserve to maintain its independence and remain apolitical in its decision-making processes.
The remarks come ahead of the second revision of the U.S. GDP data for the first quarter, which will be released on Thursday, June 27. Additionally, critical data on Personal Income, Personal Spending, and the U.S. PCE inflation are scheduled for release on Friday. The PCE and Core PCE inflation data, in particular, will be closely scrutinized by market participants.
The Federal Reserve Governor stated, “However, with average core CPI inflation this year through May running at an annualized rate of 3.8 percent, notably above average inflation in the second half of last year, I expect inflation to remain elevated for some time.” Moreover, he hinted at diverging from global monetary policy trends, including the U.K. policies.
Bowman added, “In contrast to the past two years, it is possible over the coming months that the path of monetary policy in the U.S. will diverge from that of other advanced economies, including the U.K., as the underlying economic developments and outlooks across jurisdictions exhibit greater heterogeneity.” This suggests that even if Bank of England (BoE) considers a rate cut due to the recent inflation drop to 2%, the U.S. is unlikely to mirror the approach.
Also Read: Bitcoin Crashes 30% Against Gold, Here’s Why Peter Schiff Warns Further Dip
Bearish Trend In Crypto Market
The Federal Reserve’s monetary policy plays a crucial role in shaping market conditions, and this extends to the crypto market. Higher interest rates generally lead to a stronger U.S. dollar, which can exert downward pressure on asset prices, including cryptocurrencies. Conversely, lower rates typically support asset price inflation as investors seek higher returns in riskier markets.
Bowman’s indication that rate cuts are unlikely until 2025 implies that the cost of borrowing will remain relatively high, potentially stifling investment flows into the crypto market. This scenario can expedite the June crypto crash, as investors may prefer safer, yield-bearing assets over volatile cryptocurrencies.
The crypto market has been experiencing significant volatility. Bitcoin (BTC), the leading crypto, recently witnessed a crash below $59,000 amid substantial sell-offs. Contributing factors include the latest offloading of 400 BTC by the German government. In addition, the anticipated repayment of $9 billion worth of Bitcoin from Mt. Gox further dampened market sentiment.
Bitcoin’s Relative Strength Index (RSI) recently touched 28, a level that typically signals an oversold condition and potential for a rebound. Despite this, the lack of anticipated rate cuts has fueled fears of prolonged market turbulence. As traditional financial conditions tighten, the appetite for riskier assets such as cryptocurrencies often diminishes.
However, altcoins like Ethereum (ETH), Solana (SOL, and Dogecoin (DOGE) showed resilience despite Bitcoin’s decline. Nonetheless, the fears of a crypto crash loom as the Federal Reserve maintains a hawkish stance on rate cuts. 10x Research, a crypto analytics firm, highlighted that despite the cool CPI data, Bitcoin failed to breakout due to the Fed’s rigid stance.
Also Read: Bitcoin Miners Sell 30K BTC, Miner Reserve Dips To 14-Year Low
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the filing for Fidelity’s spot Solana (SOL) Exchange-Traded Fund (ETF).
This marks a key development in the financial industry, as Fidelity seeks to list its Solana ETF on the Cboe BZX Exchange. The acknowledgment comes after Fidelity submitted a proposed rule change, paving the way for the potential approval of the product.
Fidelity’s Spot Solana ETF Proposal
The SEC’s acknowledgment follows Fidelity’s filing to list and trade shares of the Fidelity Solana Fund under the Cboe BZX Exchange. The proposed rule change, initially submitted on March 25, was later amended on April 1, 2025, to clarify certain points and add additional details.
The amended proposal aims to list the Solana ETF under BZX Rule, which pertains to commodity-based trust shares. According to the Cboe BZX Exchange, Fidelity plans to register the shares with the SEC through a registration statement on Form S-1.
Fidelity’s experience with crypto ETFs, having launched the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH), has prepared it for this new initiative. FBTC has drawn substantial interest, accumulating nearly $17 billion in assets, while FETH currently manages around $975 million.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. Senate Banking Committee has voted to approve Paul Atkins’ nomination for the role of Chair of the Securities and Exchange Commission (SEC). The vote, which took place on Thursday, passed with a narrow margin of 13-11, along party lines.
Paul Atkins, nominated by President Donald Trump, now moves one step closer to taking over the top regulatory position at the US SEC.
Senate Banking Committee Approves Paul Atkins Nomination
Paul Atkins’ nomination for SEC Chair has received approval despite sharp opposition from Democratic members of the Senate Banking Committee. The vote was entirely split, with Republicans supporting Atkins and all Democrats opposing the decision.
This partisan divide highlights the contentious nature of Atkins’ confirmation, which had been under scrutiny for several reasons.
The committee’s approval now clears the path for Atkins to proceed to the full Senate for a final confirmation vote. Given the Republican-controlled Senate, it is widely expected that Atkins will secure the necessary votes to take over the SEC leadership. With Republicans holding a 53-47 majority in the Senate, the confirmation process is anticipated to move forward swiftly.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cryptocurrency exchange Kraken has obtained a Restricted Dealer registration in Canada. The registration comes after completing a pre-registration undertaking (PRU) process with Canadian authorities.
The exchange has also announced the appointment of Cynthia Del Pozo as its new General Manager for North America. Del Pozo will oversee Kraken’s growth initiatives in Canada.
Kraken Completes PRU Process In Canada
Kraken’s Restricted Dealer registration marks the completion of a thorough pre-registration undertaking (PRU) process with Canadian regulators. The registration places Kraken under the supervision of the Ontario Securities Commission (OSC). This oversight ensures users have access to secure crypto products within a properly regulated local ecosystem.
According to the Canadian Securities Administrators (CSA), the Restricted Dealer registration is one of eight firm registration types in Canada. This particular classification is used for firms that “do not quite fit under any other category.” It also comes with specific requirements and conditions set by securities regulators.
Kraken’s regulatory achievement comes during a period of change in the Canadian crypto sector. Just months earlier, competitor Gemini exchange announced its departure from the Canadian exchange market by the end of 2024. This was a move that surprised many and raised questions about cryptocurrency regulation clarity in the country.
Kraken Introduces New Canadian GM
Del Pozo has joined Kraken to lead its Canadian operations as the new General Manager for North America. She has nearly 15 years of experience in corporate development, operations, and fintech consulting. Del Pozo will help to guide Kraken’s expansion across Canada during this important phase of crypto’s development in the region.
“Canada is at a turning point for crypto adoption, with a growing number of investors and institutions recognizing digital assets as a vital part of the financial future. I’m thrilled to join Kraken’s mission at this critical moment, and to lead our expansion efforts, ensuring we continue to serve our clients long-term with innovative and compliant products,” said Del Pozo.
In her role, Del Pozo will focus on strengthening Kraken’s regulatory relationships and also scaling the company’s presence throughout North America.
Del Pozo also commented on the registration achievement: “This Restricted Dealer registration is testament to the high bar Kraken has always set for consumer protection, client service, and robust security. We’re excited to continue expanding our world-class investment platform and to deliver innovative products that provide real-world utility to Canadians.”
The Exchange’s Continued Growth In Canada
Over the past two years, the cryptocurrency exchange has shown steady expansion in Canada while working through the PRU process with regulators. During this period, the exchange has doubled its team size and monthly active users.
According to the official blog post figures, the firm now has more than $2 billion CAD in total client assets under custody. Kraken has also increased support for some of the most popular cryptocurrencies. It provides several CAD spot trading pairs that enable Canadians to trade crypto without paying expensive foreign exchange fees.
According to Innovative Research Group’s 2024 Investor Survey, 30% of Canadian investors currently own or have owned cryptocurrencies. Likewise, a KPMG Canada survey discovered that 30% of Canadian institutional investors now have exposure to cryptocurrencies, which means widespread adoption across investor types.
Vignesh
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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