Fed Hikes Rates, CLARITY Act Fails, and Lagarde Blocks Binance's EU License
The Federal Reserve raised interest rates by 25 basis points to 3.75-4.00%, citing elevated inflation and a need for more timely return to the 2% target.
Nick Timiraos reported that 16 out of 18 participants expect at least one more rate hike in 2026, with only a small number anticipating rates below 4% by the end of 2027.
Grayscale argues that this rate hike is a mid-cycle adjustment rather than a cyclical policy shift, and notes that it will not trigger major changes in the crypto market. However, stablecoin issuers such as Circle and Tether will earn higher income from rising interest rates.
The CLARITY Act failed to advance in the US Senate, falling short of the 60-vote threshold with fewer than 50 affirmative votes.
The US SEC approved an 'Innovation Waiver', allowing for limited pilot trading of tokenized National Market System stocks on specific on-chain venues known as Tokenized Securities Venues (TSVs).
ECB President Christine Lagarde personally intervened to block Binance's EU-wide license via Greece, citing concerns over the dominance of US dollar stablecoins in Europe and potential disruption to the development of the digital euro.