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Trump Visits the Federal Reserve, Calls for Aggressive Rate Cuts: “We Should Be Like Switzerland”
President Donald Trump reignited pressure on the Federal Reserve this week, calling for a dramatic 300 basis point interest rate cut during a high-profile visit to the Fed’s Washington headquarters. Though officially scheduled to review ongoing renovations, the visit quickly became a platform for renewed criticism of Fed Chair Jerome Powell—and a flashpoint in the ongoing political pressure on monetary policy.
Trump Pushes for Radical Cuts: “Rocket Fuel” for the Economy
During his remarks, Trump said the U.S. should emulate Switzerland’s near-zero interest rates, calling the current federal funds rate—between 4.25% and 4.5%—“far too high.”
“We should be like Switzerland. A 300-basis-point cut would be rocket fuel for this economy,” Trump declared, citing easing inflation and a resilient job market as justification for immediate rate relief.
Trump’s statements come as the Federal Open Market Committee (FOMC) prepares for its next policy meeting on July 29–30, and as Europe begins its own series of rate cuts.
Growing Divide Inside the Fed
For the first time in nearly three decades, two Federal Reserve governors—Michelle Bowman and Christopher Waller—are expected to break with consensus and vote for a rate cut. Their dissent signals growing internal disagreement at the central bank, and gives additional weight to Trump’s calls for monetary easing.
Fed Chair Powell, however, continues to signal caution. According to CME FedWatch, markets currently price in just a 2.6% probability of a cut in July, suggesting the Fed remains focused on seeing further declines in inflation before acting.
Fed Officials Offer Mixed Signals
While the majority of Fed officials remain cautious, some are adopting a more dovish tone. San Francisco Fed President Mary Daly downplayed the inflationary impact of Trump’s tariffs and said two rate cuts in 2025 are still “on the table.”
This mixed messaging reflects deeper uncertainty inside the Fed, as policymakers weigh persistent inflation risks against slowing global growth.
Fed Independence Under Fire
Trump’s direct pressure on Powell has triggered warnings from economists and former central bankers, who argue it could undermine the independence of the Federal Reserve. According to a recent Wall Street Journal analysis, sustained political interference could lead to higher long-term bond yields—ironically driving borrowing costs higher, not lower.
Powell Faces Mounting Legal and Political Scrutiny
Adding fuel to the controversy, Powell is now facing legal scrutiny over the costs of the Fed’s ongoing renovation project. A criminal referral from Rep. Anna Paulina Luna to the Department of Justice has amplified questions over central bank spending.
Though Trump stated during his visit that he has “no current plans to fire Powell,” the political spotlight is clearly intensifying. Analysts believe Powell may ultimately be forced to move on rates before year-end to avoid further conflict and retain institutional credibility.
Outlook: A Volatile Balance Between Politics and Policy
As the July FOMC meeting approaches, the stakes are rising. While the Fed remains reluctant to act under political duress, internal dissent, public pressure, and shifting market expectations could accelerate its timetable.
With Trump positioning himself as a champion of growth via aggressive monetary easing, the independence—and future direction—of U.S. interest rate policy is entering uncharted political territory.
@ Newshounds News™
Source: Coinpedia
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GENIUS Act Sparks $4 Billion Stablecoin Surge as Institutions Jump In
The passage of the GENIUS Act is already transforming the digital asset landscape—driving a sharp $4 billion increase in stablecoin supply and opening the floodgates for banks and asset managers.
Just a week after President Trump signed the landmark bill into law, the stablecoin market cap soared to over $264 billion, with new issuers, products, and investment flows reshaping the competitive landscape of regulated crypto finance.
Regulatory Clarity Unlocks Capital
The GENIUS Act delivers long-awaited regulatory certainty for fiat-backed stablecoins—tokens pegged to the U.S. dollar and backed by cash or near-cash equivalents.
With the SEC now sidelined from issuing enforcement actions against compliant issuers, institutional players are moving quickly to launch federally recognized stablecoin products in a market that has, until now, operated in legal gray zones.
“This is exactly the kind of signal capital markets needed—clear, rules-based guidance,” one fintech lawyer told Cointelegraph. “It levels the field and invites participation from legacy finance.”
Understanding the Stablecoin Landscape
Not all stablecoins are alike. The market comprises four main categories, each with different mechanisms for achieving price stability:
- Fiat-Backed: Pegged 1:1 to currencies like the U.S. dollar, backed by cash or U.S. Treasurys. These make up 85% of the stablecoin market and are the primary focus of the GENIUS Act.
- Leading examples: USDT (Tether) and USDC (Circle), with a combined market cap over $227 billion.
- New law mandates: Full reserve backing, third-party audits, and proper licensing.
- Crypto-Backed: Overcollateralized with crypto assets like ETH or tokenized BTC.
- Example: DAI, with a market cap of ~$4.35 billion.
- Algorithmic: Maintain peg through smart contract supply controls.
- Notable failure: Terra (UST) collapse.
- Status: Sidelined under GENIUS; expected to be addressed in separate legislation.
- Commodity-Backed: Pegged to assets like gold.
- Example: PAXG (Pax Gold). Adoption remains low due to liquidity and custodial challenges.
Institutional Adoption Accelerates Post-Legislation
Since July 18, when the GENIUS Act became law, major institutions have rushed into the stablecoin sector:
- Anchorage Digital, the only federally chartered crypto bank, launched a stablecoin issuance platform in partnership with Ethena Labs, bringing USDtb stablecoin onshore under new federal standards.
- WisdomTree, a major Wall Street asset manager, debuted USDW, a dividend-paying dollar-backed stablecoin designed to support tokenized asset strategies. The firm becomes one of the first traditional asset managers to fully comply with the GENIUS framework.
Wall Street Signals Readiness
Traditional banking heavyweights are also laying the groundwork:
- Bank of America CEO Brian Moynihan confirmed the bank is actively exploring a stablecoin issuance, contingent on full regulatory alignment under the GENIUS Act.
- JPMorgan and Citigroup have also signaled intentions to enter the stablecoin market, adding weight to the idea that dollar-backed digital currencies are now entering a mainstream compliance regime.
A New Era for U.S. Stablecoins
The GENIUS Act appears to be delivering on its promise: creating a legal foundation for stablecoin innovation without stifling enforcement fears. With regulated entry paths now open, experts expect:
- More compliant issuers,
- Accelerated adoption of tokenized assets, and
- A surge in competition among banks, fintechs, and asset managers seeking to dominate the stablecoin space.
As traditional finance merges with crypto infrastructure, the GENIUS Act may go down as the inflection point for mass institutional adoption of regulated digital dollars.
@ Newshounds News™
Source: Cointelegraph
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XRP Quietly Gains Ground on Nasdaq as Institutional Adoption Surges
Once sidelined by legal uncertainty, XRP is now becoming an institutional asset—securing exposure across Nasdaq’s ecosystem and appearing in structured financial products, ETFs, and corporate treasuries.
Thanks to regulatory clarity and growing confidence in Ripple’s infrastructure, XRP has moved from the margins of finance to the heart of Nasdaq’s digital asset playbook.
A Break from the Past: XRP Emerges from the Legal Shadows
For years, Ripple’s legal battle with the SEC cast a long shadow over XRP, effectively freezing out institutional investors and stalling its integration into regulated markets.
The lack of clarity stymied access to essential financial infrastructure:
- No futures ETFs
- No Nasdaq index listings
- No corporate treasury mandates
But 2025 has changed the game.
With new legal frameworks in place and Ripple’s victory over the SEC behind it, XRP is seeing a rapid institutional pivot, with eight major developments linking it directly to Nasdaq in just two months.
Key Institutional Milestones: XRP’s Nasdaq Footprint Expands
The transformation began in earnest on May 23, when Volatility Shares launched two XRP-focused futures ETFs—XRPI and XRPT—on Nasdaq:
- XRPI allocates at least 80% of its assets to XRP futures, granting traders regulated exposure to XRP’s price movements.
- This marked the first XRP futures ETF to debut on a major U.S. exchange—an institutional milestone once thought unlikely.
From there, the momentum snowballed:
- May 28: ZK International (NASDAQ: ZKIN) issues XRP-linked warrants, creating a structured financial product tied directly to XRP.
- June 3: VivoPower International (NASDAQ: VVPR) raises $121 million, allocating $100 million into XRP via the Flare network. The strategy aims to:
- Enhance blockchain-based treasury operations
- Support the XRPL DeFi ecosystem
- Reduce corporate debt
- June 5: Webus International (NASDAQ: WETO) launches a $300 million XRP treasury mandate with an additional $100 million equity line, confirming growing corporate confidence in XRP as a strategic asset.
- June 12: XRP is added to the Nasdaq Crypto US Settlement Price Index, placing it alongside top-tier digital assets used by institutions for pricing and settlement.
- On the same day, Trident Digital Tech Holdings (NASDAQ: TDTH) unveils a $500 million XRP treasury strategy. Plans include:
- Funding via equity issuance, structured finance, and private placements
- Staking protocols to earn yield on XRP reserves
June 18: Nature’s Miracle Holding (NASDAQ: NMHI) receives SEC approval for a $20 million XRP treasury program.
- June 20: Worksport joins the trend, announcing XRP purchases as part of its crypto treasury diversification strategy.
Muted Price, But Rising Institutional Confidence
Despite this flurry of activity, XRP’s price has not yet reflected the institutional buildup:
- Current price: $3.09
- Down 0.42% over the past 24 hours
- Down 10.09% over the past week
Analysts say the market is still adjusting to the macroeconomic backdrop, even as institutional trust in XRP solidifies.
Conclusion: From “Crypto Outlaw” to Wall Street Asset
What was once a regulatory risk is now becoming a Wall Street instrument.
XRP’s integration into Nasdaq’s ecosystem marks a new chapter—not just for Ripple, but for regulated crypto adoption across the board. From ETFs to indexes to corporate treasuries, XRP is laying down roots in the same financial territory once reserved for legacy assets.
If current momentum continues, XRP may soon stand as a benchmark for what successful regulatory integration looks like in the next era of crypto-finance.
@ Newshounds News™
Source: Crypto News Flash
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