Headline
Federal Reserve Meeting Minutes: Stablecoins Could Have Broad Impacts, Deserving Close Attention
The Federal Reserve released the minutes of its July meeting, which noted that many participants discussed recent and future developments related to payment stablecoins and their potential impact on the financial system. These participants noted that the recent passage of the GENIUS Act (United States Stablecoin Guidance and National Innovation Act) could increase the use of payment stablecoins. They stated that payment stablecoins could help improve the efficiency of the payment system and observed that such stablecoins could increase demand for the assets that back them, including U.S. Treasury bonds. Furthermore, participants expressed concern that stablecoins could have broader implications for the banking and financial systems, as well as for the implementation of monetary policy, and therefore warrant close attention, including monitoring the various assets used to back stablecoins.
▌US Senator Lummis Pushes for Completion of Crypto Market Structure Bill by Year-End
US Senator Cynthia Lummis, a Republican from Wyoming, plans to submit a cryptocurrency market structure bill to the President for signature before the end of the year, using the Digital Asset Market Clarity Act, passed by the House of Representatives, as the basis for the Senate version. Lummis expressed her hope to retain as much of the House's amendments to the stablecoin bill and other provisions as possible to respect the House's work (the bill was previously approved by 78 Democratic members). She emphasized that the goal is to complete the legislation before Thanksgiving.
Market
As of press time, according to Coingecko data:
BTC price is $114,336, up or down 1.3% in 24 hours;
ETH price is $4,338.23, up or down 6.0% in 24 hours;
BNB price is $872.23, up or down 5.4% in 24 hours;
▌OpenAI CFO: Will consider going public at some point in the future
OpenAI CFO Sarah Freer: Will consider going public at some point in the future.
Cryptocurrency
▌Federal Reserve Bank Bostic: Cryptocurrency is too small to affect financial stability
Federal Reserve Bank Bostic: Cryptocurrency is too small to affect financial stability.
▌Coinbase CEO: Bitcoin price will reach $1 million in 2030
Coinbase CEO Brian Armstrong predicts that the price of Bitcoin will reach $1 million by 2030.
▌Stablecoins Mentioned 8 Times in the Federal Reserve Minutes
Financial blog Zero Hedge stated that stablecoins were mentioned 8 times in the Federal Reserve minutes.
▌US SEC Chairman: Only a Small Portion of Crypto Tokens Should Be Considered Securities
▌SEC Chairman: Only a Small Portion of Crypto Tokens Should Be Considered Securities
SEC Chairman Paul Atkins stated at the SALT Wyoming Blockchain Symposium that only a small portion of crypto tokens should be considered securities, marking a shift from the agency's previous position under Gary Gensler's leadership.
▌Tether CEO: The United States Should Use Bitcoin as a Dollar Hedge Asset
▌Tether CEO Paolo Ardoino stated that the United States should view Bitcoin as a hedge against the dollar. He hopes the United States will establish a large Bitcoin balance sheet to enhance financial security and asset diversification. US Treasury Secretary: Stablecoin Market Projected to Reach $2 Trillion According to market news released by @Cointelegraph, US Treasury Secretary Bessant predicts the stablecoin market will reach $2 trillion and will become a key buyer of US Treasury bonds. The Financial Times reported that "Bessant has sent a signal to Wall Street." AMTD Group, a US-listed company, plans to launch a "crypto-for-stock" conversion program. On Tuesday, three NYSE-listed affiliates of AMTD Group proposed a cryptocurrency-for-stock conversion program, allowing holders of Bitcoin, Ethereum, USDT, Binance's BNB, and USDC to exchange for newly issued shares on the exchange. Participating companies include AMTD IDEA (AMTD), AMTD Digital (HKD), and The Generation Essentials Group (TGE). The pricing of the program will be negotiated by both parties and based on the then-current market value, and the shares can be allocated among the three issuers. The group positioned the program as a "channel and effective means" for portfolio diversification and said the issuances would "serve as a bridge between the world of crypto assets and leading global stock exchanges."
▌Nasdaq plans to delist BNB Treasury Company Windtree Therapeutics due to violations
Nasdaq plans to delist BNB Treasury Company Windtree Therapeutics (ticker: WINT) because the company failed to comply with Nasdaq Listing Rule 5550(a)(2) - that the minimum bid price for the stock must be maintained above $1. Windtree confirmed its non-compliance in a filing with the U.S. Securities and Exchange Commission. Tether Treasury minted an additional 1 billion USDT on Ethereum. According to Whale Alert, Tether Treasury minted an additional 1 billion USDT on the Ethereum network at 7:37 PM Beijing time yesterday. Coinbase will list Sapien (SAPIEN). Coinbase will support Sapien (SAPIEN) on the Base network. Trading will begin later today, subject to liquidity conditions. The SAPIEN-USD trading pair will be launched in phases. Support for SAPIEN may be limited in some jurisdictions.
Important Economic Developments
Federal Reserve Meeting Minutes: Agreed to Maintain Interest Rates, Economic Outlook Uncertainty Remains High
The Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting from July 29th to 30th. The minutes showed that the Fed agreed to maintain the target range for the federal funds rate between 4.25% and 4.5%. During the monetary policy discussion at this meeting, members agreed that, although fluctuations in net exports impacted the data, recent indicators suggest that economic activity growth slowed in the first half of the year. Inflation remains slightly elevated, and uncertainty about the economic outlook remains high. To support the Committee's goals, nearly all members agreed to maintain the target range for the federal funds rate between 4.25% and 4.5%. Vice Chairman for Supervision Michelle Bowman and Governor Christopher Waller voted against maintaining the benchmark interest rate unchanged, instead supporting a 25 basis point rate cut to prevent further weakening in the labor market. Trump allies call for investigation of Federal Reserve Governor Tim Cook over mortgage transactions, suggesting potential criminal violations. Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and a staunch Trump ally, urged Attorney General Pam Bondi to investigate two mortgage transactions by Federal Reserve Governor Tim Cook. In an August 15th letter to Bondi and Justice Department official Ed Martin, Pulte alleged that Cook "falsified bank documents and property records to obtain more favorable loan terms, potentially constituting mortgage fraud under criminal law." He stated that Cook purchased a property in Ann Arbor, Michigan, and took out a mortgage, promising to use it as her primary residence for at least a year. Two weeks later, she took out another mortgage in Georgia, also stating that it was her primary residence. Pulte also cited four criminal code sections and recommended that Bondi investigate potential offenses. No charges have been filed, and it is unclear whether Bondi will launch an investigation. Musk says reports of delaying forming a new political party are false. American entrepreneur Elon Musk commented on the Wall Street Journal's report that he has postponed forming his own political party, saying the newspaper's report "should not be taken as fact." Federal Reserve spokesperson Nick Timiraos writes: "Federal Reserve spokesperson Nick Timiraos writes: A few officials hint they may join the rate cut camp in September." Minutes released today show that the Federal Reserve's decision to hold interest rates steady last month enjoyed broad support, despite two officials dissenting and arguing for a rate cut. However, a few officials have aligned themselves with Waller and Bowman, suggesting they may support a rate cut at the Fed's next meeting on September 16-17. They said the slower-than-expected transmission of tariff increases to consumer prices should ease concerns about a new inflationary shock from rising import costs. However, inflation hawks noted that price pressures, including for services, have increased since last month's meeting. Kansas City Fed President Schmid said in a speech last week that tariffs have had a limited impact on inflation, in part because the Fed has held interest rates steady. Unlike Bowman, who has been calculating inflation after excluding tariffs, Schmid pledged never to do so, calling it "a concept that is neither meaningful nor measurable." The minutes of the Federal Reserve's July monetary policy meeting, released recently, show that most members viewed inflation risks as outweighing employment risks, with several stating that current interest rates may not be much above the neutral rate. Many members noted that the full impact of tariffs may take time to manifest, and several expected businesses to pass on the tariffs to consumers. Several members also raised concerns about high asset valuations. The meeting minutes showed that several participants emphasized that a prolonged period of inflation above 2% increases the risk of unanchored inflation expectations, especially when high tariffs prolong the inflationary impact. What are tokenized commodities? Tokenized commodities represent fractional ownership of real-world assets using digital tokens on a blockchain, while retaining their tangible value. Tokenized commodities are digital versions of real-world items (such as gold, oil, or agricultural products) recorded on a blockchain. Each token represents a portion or the entire commodity, making them easier to divide and trade. This simplifies the buying and selling of small portions of commodities, provides greater liquidity, and offers access to typically difficult-to-trade markets. Instead of purchasing the entire commodity (which can be very expensive and impractical), investors can divide it into smaller pieces called tokens. Each token represents a small portion of the commodity. Blockchain technology can help tokenize a variety of commodities, including energy resources, real estate, precious metals, and agricultural products. Commodity-backed cryptocurrencies are digital assets designed to be more stable than volatile cryptocurrencies. This stability is achieved by pegging their value to a tangible commodity such as real estate, gold, or oil. Commodity tokenization clarifies ownership, enables fractional ownership, simplifies transactions, and facilitates market activity. While promising, tokenized commodities also face challenges. Regulations are not always clear, and existing rules may not fully cover them. The technology behind tokenized commodities must be properly tested to handle the complexities of creating and trading these tokens.
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