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Federal Reserve Keeps Interest Rates Unchanged

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19 hours ago

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Following its 2-day FOMC meeting, the US Federal Reserve has decided to keep interest rates unchanged. The Fed is expected to hold off on cutting rates for the most part of this year following three consecutive rate cuts last year.

Fed Rate Cut: Federal Reserve Keeps Rates Unchanged

In a press release, the Federal Reserve announced that it will keep interest rates steady at the 4.25% to 4.5% range. This decision is in line with expectations, as traders predicted that there was a 99.5% chance the Fed would reach this decision.

This comes despite calls from US President Donald Trump for the Fed to lower rates while reaffirming his commitment to make the US the crypto capital. The Fed’s decision to keep interest rates unchanged is significant for the crypto market, considering how such a move could create a bearish sentiment among investors.

Investors are less likely to invest in risk assets like cryptocurrencies in such situations, especially if the Fed is hawkish. Now, all eyes will be on the Federal Reserve Chair Jerome Powell’s speech to determine where the US Central Bank stands regarding its outlook on the economy.

The crypto market could witness a significant rebound if Powell projects a dovish stance from the Fed in his speech. However, the Bitcoin price risks another decline if the Fed Chair projects a hawkish stance.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

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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Regulation

Canary Litecoin ETF Advances as US SEC Calls for Public Comments

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15 hours ago

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January 29, 2025

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The U.S. Securities and Exchange Commission (SEC) has acknowledged Nasdaq’s 19b-4 filing for the Canary Litecoin ETF. This marks a key step in the process of approving a spot Litecoin ETF, as the agency now seeks public input before making a decision.

SEC Requests Public Comments on Canary Litecoin ETF

The SEC has asked for public comments on the Canary Litecoin ETF filing. Comments must be submitted within 21 days after the proposal is published in the Federal Register.

This step is part of the regulatory process for approving or rejecting the exchange-traded fund (ETF).

Nasdaq initially submitted the 19b-4 form on January 16, 2025. This document is required when an exchange requests a rule change to list and trade a new product. Once the SEC acknowledges the filing, the review period begins, which can take up to 240 days.

First Altcoin ETF Filing Acknowledged by SEC

Eric Balchunas, a senior ETF analyst at Bloomberg, noted that this is the first time the SEC has acknowledged a 19b-4 filing for an altcoin ETF.

This suggests progress in the approval process for crypto ETFs beyond Bitcoin and Ethereum.

“Throw in the comments from SEC on the S-1, and this filing is by far the furthest along checking all the boxes,” Balchunas said in a post on X. He also questioned whether the SEC would take the full 240-day review period or reach a decision sooner.

This Is A Developing News, Please Check Back For More

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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.





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Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins Pro-crypto Howard Lutnick Calls For Audit Of US Stablecoins

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18 hours ago

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January 29, 2025

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Howard Lutnick, Donald Trump’s pick for Commerce Department Chief, advocated for stablecoin regulations in the United States. During his confirmation hearing today, Lutnick suggested that US stablecoins should undergo regular audits and be backed by US Treasuries.

Amid Trump’s stablecoin advancements, Howard Lutnick highlighted the significance of stablecoin regulation. The Trump pick’s suggestion underscores the necessity of a secure and reliable financial ecosystem.

Stablecoins Should Be Audited: Howard Lutnick

In his confirmation hearing, Howard Lutnick, the CEO of Cantor Fitzgerald and Trump’s nominee for Commerce Secretary, advocated for stablecoin regulation. Specifically, he suggested that US dollar-backed assets should be audited and backed by US Treasuries, emphasizing the need for greater oversight.

Further, Lutnick pushed back against allegations that stablecoin issuers facilitate illicit activities, asserting that malicious actors are misusing these assets for their own purposes. He added, “It’s like blaming Apple because criminals use Apple phones.”

Moreover, Lutnick championed the growth of artificial intelligence in the US. He believes that AI could tackle the growing illicit activities that utilize blockchain.

Cantor Fitzgerald CEO Defends Tether

While Howard Lutnick’s connections with the stablecoin issuer Tether has recently raised concerns, he supported the platform. He stated, “Tether did no business with anyone that wasn’t KYC-appropriate.” He added that he has mandated Tether to comply with US regulations. In addition, drawing a parallel with traditional finance, Howard Lutnick stated, “We don’t pick on the US Treasury when criminals use the US dollar.”

Recently, Senator Elizabeth Warren expressed concerns regarding Lutnick’s deep involvement with Tether. In a letter written on January 21, she wrote,

While you have agreed to divest your interest in Cantor Fitzgerald, which holds a 5% stake in Tether, and serves as Tether’s asset manager, this divestment does not end the questions about your deep personal ties to the company or its affiliates.

Donald Trump Promotes Stablecoin Development

In a recent development, Donald Trump signed an executive order to promote the growth of cryptocurrencies, including stablecoins. In his crypto-focused proposal, Trump highlighted his intention to “promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”

Trump also projected his skeptic approach to central bank digital currencies (CBDCs). He strictly banned agencies from issuing and establishing CBDCs.

Donald Trump’s crypto promotion and Howard Lutnick’s stablecoin regulation agenda are poised to strengthen the US crypto market. The community remains anxious about Trump’s further actions that could significantly impact the global crypto industry.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

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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How & Where to Watch Jerome Powell Speech Today?

Published

22 hours ago

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January 29, 2025

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The crypto community is bracing for potential market movements amid the first Federal Open Market Committee (FOMC) meeting of 2025. While everyone is watching the Federal Reserve meeting and Fed Chair Jerome Powell’s speech, there are speculations that the committee will likely maintain the current interest rates.

This FOMC meeting marks the committee’s first policy discussion following US President Donald Trump’s presidential inauguration. The meeting began on January 28 and is expected to end today, with the Chair announcing the committee’s decision on interest rates.

Let’s have a closer look at key events and timelines, as well as the crucial areas investors should monitor for important updates.

Federal Reserve Meeting and Interest Rate Cut Decision

As the Federal Reserve meeting today marks the first time in 2025, all eyes are set on Jerome Powell’s critical words on interest rate cuts. The Fed’s interest rate announcement is set to take place today at around 2.00 pm ET. Powell’s speech would follow the Fed’s announcement at around 2.30 pm ET.

Notably, the US Federal Reserve will provide a live stream of the event on its official website at the scheduled time. In addition, the community can also watch the live broadcast on the Fed’s YouTube channel and other social media platforms.

What To Expect from the FOMC Meeting?

Reportedly, the Federal Reserve is likely to keep interest rates steady within the current range of 4.25% to 4.5%, following three consecutive rate cuts since September 2024. This move gives the central bank extra time to curb inflation and evaluate the economic implications of Trump’s policies. Policymakers have already signaled a more cautious approach to rate cuts in 2025, citing the resilience of the US economy.

Commenting on the Fed’s possible pause on interest rate cuts, Erasmus Kersting, a professor of economics at Villanova University, stated,

The reason why the Fed isn’t jumping the gun at lowering the rates faster and further is that, on one hand, inflation is not gone. They looked carefully at the data, and it is still stubbornly above target, so there is concern if you lower rates further, inflation would tick up again.

How Will Fed’s Decision Impact the Crypto Market?

During the December 2024 FOMC meeting, the Federal Reserve announced its decision to reduce interest rates by 25 basis points. If the central bank decides to hold its interest rate unchanged, it will significantly impact the crypto market.

Unchanged interest rates are possibly bearish for risky assets such as cryptocurrencies. Bitcoin, currently trading above the $100k mark, may slip below the level following the Fed’s potential interest rate decision.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

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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