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U.S. Economic Events This Week May Trigger Wild Volatility in Crypto
Bitcoin slips below $113K while Ethereum steadies near $4,700 as traders brace for U.S. economic data releases.
Crypto Market Snapshot
Bitcoin and Ethereum began the week under pressure, with BTC falling under $113,000 and ETH holding near $4,700. While crypto markets have their own momentum, traders are fixated on key U.S. economic signals that could shape price action in the days ahead.
On-chain data provider Santiment has flagged rising market euphoria around expectations of Federal Reserve rate cuts. Social discussions on “Fed, rates, Powell” have jumped to an 11-month high, raising concerns of a potential local market top if optimism runs too far ahead of fundamentals.
Key U.S. Economic Indicators to Watch
1. Consumer Confidence and Sentiment
- Tuesday’s consumer confidence data is projected to slip slightly from last month, reflecting continued weakness in household spending power.
- Consumer sentiment figures, expected later this week, remain close to crisis levels.
- Impact on crypto: Weaker confidence typically supports Bitcoin as investors hedge against economic strain. Stronger data, however, may favor stocks and reduce digital asset inflows.
2. Jobless Claims
- Weekly jobless claims are expected at ~230,000, down from 235,000. A lower reading would reinforce labor market resilience, reducing pressure on the Fed to cut rates.
- However, continuing claims are edging higher, signaling more Americans struggling to find work.
- Impact on crypto: Strong labor data may cap Bitcoin in the short term, while rising continuing claims could bolster the case for rate cuts—potentially supportive for digital assets.
3. PCE Inflation Data
- Core PCE inflation, the Fed’s preferred measure, is forecast at 2.9%, up from 2.8% in July.
- Persistent inflation would make aggressive rate cuts less likely, tightening liquidity for risk assets.
- Impact on crypto: While higher inflation may weigh on short-term price action, long-term Bitcoin advocates see it as validation of BTC’s role as a hedge against monetary debasement.
Market Outlook
- Bitcoin: Down over 2% in 24 hours, testing support as volatility looms.
- Ethereum: Holding steady, consolidating after recent highs.
- Overall: Crypto markets face a week of heightened sensitivity to U.S. economic data. Traders are preparing for sharp swings as consumer confidence, jobless claims, and inflation numbers shape the Fed’s next move.
@ Newshounds News™
Source: Coinpedia
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US Banks Lobby OCC for National Standards to Limit State-Level Oversight
Major banks push for federal preemption amid growing patchwork of state banking rules.
Banks Push for Uniform Federal Oversight
Leading U.S. banks are urging the Office of the Comptroller of the Currency (OCC) to establish new federal regulations that would override certain state-imposed rules. According to Reuters, the lobbying effort focuses on creating national standards governing:
- Lending activities
- Bond issuance
- Investment banking services
- Anti-money laundering (AML) assessments
The move reflects banks’ growing frustration with the patchwork of state regulations, which they argue complicates compliance and undermines efficiency.
Federal Preemption at the Center
The push aligns with the Trump administration’s efforts to reinforce federal preemption, particularly in light of a 2024 U.S. Supreme Court ruling affirming that national banking laws supersede conflicting state regulations.
Additionally, a recent executive order on “debanking” practices—designed to prevent financial institutions from denying services based on political or religious criteria—has added momentum to the call for uniform national standards.
Industry Groups Back the Proposal
Prominent trade associations have voiced strong support:
- Bank Policy Institute (BPI): “We strongly support national preemption and believe federal fair access legislation or regulation would be a prudent move to address account closures in a consistent way across all states.”
- American Bankers Association (ABA): Endorsed the proposal as a necessary step to ensure regulatory clarity and operational consistency.
State Regulators Push Back
Not all stakeholders agree. Several state regulators argue that:
- Local oversight is critical for consumer protection.
- State-specific rules help maintain market integrity.
- Regulations can be tailored to community needs more effectively at the local level.
This tension has intensified as states including Texas, Florida, and California adopt laws restricting banks from engaging in practices tied to social or political considerations.
Outlook
The debate over federal vs. state banking authority is poised to intensify as the OCC weighs industry calls for regulatory standardization. While banks see national rules as a pathway to efficiency and clarity, state authorities maintain that local oversight remains essential to protecting consumers and communities.
@ Newshounds News™
Source: Daily Hodl
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RWA Tokenization Market Projected to Reach $16 Trillion by 2030, Skynet Report Finds
Institutional adoption, regulatory progress, and U.S. Treasury tokenization drive rapid growth in real-world asset markets.
Market Forecast
The global market for real-world asset (RWA) tokenization could expand to $16 trillion by 2030, according to the 2025 Skynet RWA Security Report.
- Tokenized U.S. Treasuries are leading the trend, projected to reach $4.2 billion in 2025, with short-term government bonds driving most activity.
- Growth is expected to accelerate as institutional investors adopt tokenized products for yield generation, liquidity management, and operational efficiency.
Institutional Adoption and Use Cases
The report highlights collaboration between traditional finance (TradFi) and decentralized finance (DeFi) as a core driver of expansion.
- Major banks and asset managers are exploring tokenization of assets such as debt instruments, commodities, private credit, and trade finance.
- Tokenized money market funds and private credit markets are emerging as early use cases.
- The convergence of TradFi and DeFi, according to Skynet, offers greater transparency, accessibility, and efficiency.
Regulatory Developments
Regulatory clarity is seen as essential to unlocking large-scale institutional participation:
- Hong Kong, Singapore, and the United States are implementing frameworks to govern tokenization platforms.
- Clearer rules on custody, risk management, and investor protections are expected to accelerate adoption.
Challenges for Growth
Despite strong potential, several structural challenges remain:
- Limited secondary market liquidity for RWA tokens, as most remain institutionally held or restricted to closed platforms.
- Legal and regulatory inconsistencies across jurisdictions.
- Cybersecurity and smart contract risks, requiring robust custodians and compliance infrastructure.
Skynet emphasized the importance of federally chartered crypto banks or licensed custodians in securing institutional trust.
Outlook
The report concludes that the combination of blockchain-native liquidity and real-world yields is attracting both retail and institutional capital. However, broader adoption will require:
- Infrastructure investments to scale tokenization platforms.
- Regulatory alignment across key markets.
- Simplified access for retail investors via regulated intermediaries and on-ramps.
With these conditions in place, Skynet projects tokenization could achieve the $16 trillion milestone by 2030.
@ Newshounds News™
Source: CryptoNews
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