Fed Interest Rate Decision
The US Federal Reserve (Fed) cut its policy interest rate by 25 basis points to a range of 4%–4.25% at its September meeting. This was in line with expectations in the Bloomberg survey. The decision was taken by a vote of 11 to 1; the dissenting vote was cast by Stephen Miran, whom Trump appointed to the Fed Board of Governors. Miran voted in favor of a 50-basis-point cut.
According to new projections, Fed members anticipate a further half-point rate cut this year following today’s reduction. Additionally, the year-end 2025 interest rate expectation has fallen from 3.9% to 3.6%.
Highlights from the Decision Text
- Downside risks to employment have increased.
- Inflation remains “somewhat” elevated.
- It was noted that there has been a shift in the balance of risks, with downward pressure on the employment side and upward pressure on the inflation side continuing.
Powell’s Statements
Fed Chairman Jerome Powell said in his speech after the decision:
- Unemployment is expected to trend downward after 4.5%.
- He noted that short-term inflation expectations have risen, with tariffs playing a role in this.
- He said tariffs have pushed up prices in some product groups, but the main effect will be seen with a delay.
- He emphasized that monetary policy worked well in 2024 and showed its effects.
- When asked whether new member Miran would cast a shadow over independence, he replied, “I don’t believe we will lose our independence.”
Bloomberg: Over 100 Crypto ETFs on the Way
According to Bloomberg ETF analyst Eric Balchunas, over 100 crypto ETFs could be listed within 12 months after the SEC’s universal listing standards come into effect. A similar regulation previously increased the number of issuances in the traditional ETF market from 117 to 370 annually.
Debate Over the US Crypto Envoy
Allegations have surfaced that David Sacks, known as the “Crypto Czar,” has exceeded the 130-day legal limit for his term. His spokesperson stated that the days were not consecutive and the limit had not been exceeded. However, some figures, such as Senator Elizabeth Warren, continue to question the matter.
Franklin Templeton: More Volatility Expected in 2026
Portfolio manager Jack McIntyre noted that there are increasing differences of opinion among Fed members regarding 2026 policies. He said this could create high volatility in the markets. He added that the Fed’s current cut is for risk management purposes and focuses on the weakness in the labor market.
Ripple CEO: XRP ETF Inevitable
Ripple CEO Brad Garlinghouse stated that he believes XRP will be included in the White House’s crypto reserves. He also said that XRP ETF approval before the end of the year is “inevitable.” The SEC is currently reviewing 11 XRP ETF applications, including those from Franklin Templeton, Bitwise, and Canary.
SEC Gives Major Approval to Crypto ETFs
The SEC approved trading of both the Grayscale Digital Large Cap Fund and options linked to the Cboe Bitcoin US ETF Index. It also adopted general standards that will allow crypto spot ETFs to be listed without the need for individual approval applications. This step will make it possible to complete the approval process within 75 days instead of months.
New Rules from New York Financial Regulator
NYDFS has mandated that banks use blockchain analysis tools. The goal is to preemptively identify risks of money laundering, terrorist financing, and sanctions evasion. On the same day, Bullish received a BitLicense and money transfer license from the state.
SOL and XRP Futures from CME
CME Group announced plans to launch Solana and XRP futures and options on October 13. SOL and XRP futures contracts have already reached trading volumes of 540,000 and 370,000 contracts, respectively.
Bio Protocol Raises $6.9 Million
Decentralized science platform Bio Protocol raised $6.9 million in funding led by Maelstrom Fund. The new version, Bio V2, includes on-chain funding, an artificial intelligence research framework, and the BioXP incentive system. Additionally, AI-powered research tools called BioAgents will facilitate the funding and commercialization of scientific discoveries.
Crypto ETF Flows
According to Lookonchain data, 10 Bitcoin ETFs saw a total inflow of 2,544 BTC (≈$296M) today.
BlackRock added 1,794 BTC, increasing its holdings to 763,699 BTC. In contrast, 9 Ethereum ETFs saw a total outflow of 11,463 ETH (≈$51.6M). Fidelity’s ETF alone recorded an outflow of 10,731 ETH.
