Fed Governor Notes Fading Crypto Euphoria; Chinese Exchanges Tighten Rules; Senators Query UAE Stake in WLFI

The Federal Reserve has a 96% probability of maintaining interest rates unchanged in March.

ChainCatcher News, according to Jinshi reports, CME “Federal Reserve Watch” shows that the probability of the Federal Reserve maintaining interest rates unchanged until March is 96%, and the probability of a 25 basis point rate cut is 4%. By April, the probability of a total 25 basis point rate cut is 17.3%, the probability of keeping rates unchanged is 82.1%, and the probability of a total 50 basis point cut is 0.6%. By June, the probability of a total 25 basis point rate cut is 46.8%.

What signals did the US SEC send behind the new 2% discount regulation for stablecoins?

Author: Tonya M. Evans Translation: Odaily Planet Daily Golem On February 19, the U.S. Securities and Exchange Commission (SEC) Trading and Marketing Division released a new FAQ clarifying how broker-dealers should handle payment stablecoins under the net capital rule. Subsequently, SEC Cryptocurrency Working Group Chair Hester Peirce issued a statement titled "A 2% Discount Will Do." Peirce stated that if broker-dealers apply a "2% discount" to their own positions in qualifying payment stablecoins when calculating net capital, rather than a punitive 100% discount, SEC staff would not object. Although this may sound somewhat obscure, this accounting adjustment could be the beginning of a softening of the SEC's stance on cryptocurrencies since early 2025.

FED Kashkari blasts: Cryptocurrencies are "useless," stablecoins are a "hodgepodge of buzzwords"

Federal Reserve Chair Neel Kashkari strongly questions the practicality of cryptocurrencies, believing they have yet to prove any value, and compares their potential to that of artificial intelligence. He criticizes stablecoins for not bringing substantial upgrades to the financial system and argues that their advantages mainly do not target American consumers, highlighting his skepticism towards cryptocurrencies and contrasting with the government's supportive stance.

U.S. SEC Officially Reprices Stablecoin Risk, Boosting TradFi Integration

The U.S. SEC's recent policy change allows broker-dealers to treat certain dollar-pegged stablecoins as near-cash instruments. This change reduces capital requirements and encourages the integration of stablecoins into traditional finance, promoting efficiency and wider adoption in financial markets.

Federal Reserve officials criticize: Stablecoin advantages haven't surpassed existing systems; crypto applications are basically nonsense

The President of the Federal Reserve Bank of Minneapolis, Kashkari, strongly criticizes cryptocurrencies for lacking real value, questions the advantages of stablecoins, and defends the independence of central banks. He pointed out that compared to artificial intelligence, cryptocurrencies have failed to demonstrate their economic utility, and emphasized the need to maintain the independence of monetary policy, which is in opposition to the crypto policies of the Trump administration.

The U.S. SEC clarifies that broker-dealers holding stablecoins can count them as net capital at a 2% discount

ChainCatcher Message: Brokers generally apply a 100% discount to stablecoins, meaning that related holdings cannot be counted towards net capital, severely limiting institutional participation in stablecoin activities.