Bitcoin

Federal Reserve Minutes Reveal Plans for More Rate Cuts, Uncertainty on Pace

Published

1 month ago

October 10, 2025

The U.S. Federal Reserve’s latest meeting minutes, released on October 9, 2025, have ignited discussions across financial markets, signaling that additional interest rate cuts are on the horizon. However, the document reveals a lack of consensus among policymakers regarding the number and timing of these reductions, injecting a layer of uncertainty into an already volatile economic landscape. For the cryptocurrency sector, this development could reinforce digital assets like Bitcoin as a hedge against weakening fiat currencies, potentially sparking renewed investor interest.

Decoding the Fed’s Mixed Signals

The minutes from the September Federal Open Market Committee (FOMC) meeting underscore a commitment to easing monetary policy in response to cooling inflation and moderating economic growth. Officials acknowledged that “most participants” anticipate further rate cuts, building on the 50-basis-point reduction implemented in September—the first such move since 2020. Yet, the path forward remains murky: while some members favor a gradual approach with quarterly adjustments, others advocate for more aggressive cuts if economic data softens further. This divergence highlights the Fed’s delicate balancing act between supporting employment and preventing inflationary pressures from reigniting.

Federal Reserve Chair Jerome Powell’s upcoming remarks are expected to provide additional clarity. Market participants will closely monitor his comments during the next press conference, as they could sway expectations for the November meeting. Analysts suggest that any dovish tone from Powell might accelerate the pace of cuts, while hawkish undertones could temper optimism.

Crypto’s Bullish Case in a Low-Rate Environment

For the cryptocurrency market, the prospect of sustained rate cuts is a tailwind. Lower interest rates typically erode the appeal of traditional safe-haven assets like bonds, driving capital toward higher-yield opportunities such as equities and digital currencies. Bitcoin (BTC), often viewed as “digital gold,” stands to benefit as a hedge against fiat currency debasement, especially if cuts signal persistent economic weakness. As of October 10, 2025, BTC is holding steady around $121,500, reflecting cautious optimism amid broader market fluctuations.

Altcoins could see amplified gains, fueled by easier liquidity that encourages risk-taking. Historical patterns show that Fed easing cycles have correlated with crypto bull runs; for instance, post-2020 rate cuts preceded Bitcoin’s surge to all-time highs. Crypto media outlets are urging investors to stay vigilant, emphasizing Powell’s speeches as key barometers for potential market impacts. A clearer signal of aggressive cuts could trigger inflows, while prolonged uncertainty might sustain BTC’s current price stability.

Global Ripples and Investor Strategies

The implications extend far beyond U.S. borders, promising easier liquidity for international investors and central banks worldwide. Emerging markets, particularly in Asia and Latin America, may experience reduced borrowing costs, indirectly boosting global risk appetite. This could channel fresh capital into Bitcoin and altcoins, as institutional players diversify portfolios in anticipation of a weaker U.S. dollar.

For global investors, the Fed’s trajectory underscores the importance of hedging strategies. Cryptocurrencies offer a non-correlated asset class, potentially shielding against currency volatility. However, the minutes’ emphasis on data-dependency serves as a reminder that outcomes hinge on upcoming economic indicators, including employment reports and inflation metrics.

Navigating Uncertainty in a Crypto-First World

As the Federal Reserve grapples with its next moves, the crypto community finds itself at a pivotal juncture. The minutes’ revelation of impending cuts, tempered by pacing debates, sets the stage for heightened volatility—but also opportunity. With BTC’s resilience and altcoins poised for liquidity-driven rallies, savvy investors are advised to track Powell’s rhetoric closely. In an era where traditional monetary policy increasingly intersects with decentralized finance, these Fed decisions could prove instrumental in shaping the next chapter of crypto adoption.

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The content on CoinReporter.io is for informational purposes only and is not financial or investment advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult a qualified financial advisor before making investment decisions. CoinReporter.io and its authors are not liable for any losses resulting from actions based on this website’s content.

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Bitcoin

Trump Administration Explores Allowing Crypto-Backed Mortgages

Published

1 hour ago

November 12, 2025

Coin Reporter Correspondent

In a bold move to fuse digital innovation with traditional housing finance, the Trump administration is advancing policies that could allow Americans to use cryptocurrency holdings as collateral for mortgages. Issued in late June 2025, a directive from the Federal Housing Finance Agency (FHFA) orders government-backed mortgage giants Fannie Mae and Freddie Mac to develop frameworks for incorporating crypto assets into single-family loan risk assessments—without requiring borrowers to liquidate their digital holdings into cash first. This initiative, championed as part of President Donald Trump’s vision to position the United States as the “crypto capital of the world,” could unlock billions in untapped wealth for homebuyers while sparking debate over financial stability.

Revolutionizing Mortgage Underwriting

The FHFA’s order, signed by Director William J. Pulte on June 25, 2025, marks a dramatic reversal from prior policies. Under the Biden administration, Fannie Mae and Freddie Mac explicitly excluded cryptocurrency from income or asset considerations due to its “high level of uncertainty.” Now, these entities—which guarantee over half of U.S. mortgages—must propose adjustments to their underwriting processes, including volatility discounts and verification protocols for crypto held on regulated U.S. exchanges.

Pulte announced the directive on X, stating: “After significant studying, and in keeping with President Trump’s vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage.” The proposals require board approval and FHFA sign-off, with an emphasis on risk mitigants like “adjustments for market volatility and ensuring sufficient risk-based adjustments to the share of reserves comprised of cryptocurrency.”

This shift means crypto-rich individuals—estimated at over 50 million Americans holding digital assets—could leverage Bitcoin, Ethereum, or other approved tokens to boost their loan eligibility, similar to how stocks or retirement accounts are evaluated today. Private lenders like Milo Credit have already pioneered crypto-secured mortgages since 2022, but federal backing could scale this nationwide, potentially increasing buying power without triggering capital gains taxes from sales.

Economic Boost or Risky Gamble?

Advocates hail the policy as a catalyst for economic growth, arguing it taps into the $2.5 trillion U.S. crypto market to fuel housing demand amid high interest rates and a sluggish real estate sector. “This could inject fresh liquidity into the housing market, lowering barriers for tech-savvy millennials and Gen Z buyers who view crypto as a core asset,” said Sen. Cynthia Lummis (R-Wyo.), who introduced bipartisan legislation to codify the FHFA directive into law. Industry leaders echo this sentiment, with Ripple CEO Brad Garlinghouse praising the administration’s pro-innovation stance under Treasury Secretary Scott Bessent, a confirmed crypto advocate who has shaped related policies like staking guidance for exchange-traded products.

The broader context includes Trump’s January 2025 executive order establishing a Presidential Working Group on Digital Asset Markets, which has produced reports recommending crypto integration into mortgages and even 401(k)s. Bessent, in July remarks, framed these efforts as building a “Golden Age of Crypto,” rescinding prior “anti-crypto” measures and fostering a regulatory environment that aligns with Republican values of financial freedom. By November 2025, follow-up discussions suggest the policy could extend to a “strategic national digital assets stockpile,” further embedding crypto in federal finance.

Yet, critics warn of volatility’s perils. Democrats in the Senate, including those raising alarms during Lummis’s bill hearings, argue that baking crypto into the mortgage system could amplify systemic risks, reminiscent of the 2008 subprime crisis. “Lenders already struggle with crypto’s verification challenges; a market crash could leave borrowers underwater and taxpayers on the hook,” noted a Senate Banking Committee Democrat in response to the directive. Only 1% of recent homebuyers used crypto for down payments, per a National Association of Realtors survey, highlighting limited current demand but underscoring the experimental nature of the push.

Navigating Valuation, Regulation, and Inclusion

Implementation hinges on robust frameworks for crypto valuation—likely using real-time exchange data with conservative haircuts for price swings—and custody rules limiting acceptance to platform-held assets, excluding self-custodied wallets for security reasons. The FHFA’s directive mandates these details, but experts anticipate SEC oversight to ensure compliant assets like Bitcoin and Ethereum qualify first.

If enacted, the policy could enhance financial inclusion by enabling underserved crypto holders—disproportionately young and diverse demographics—to access homeownership without forced asset sales. It aligns with Trump’s privatization plans for Fannie and Freddie, potentially ending their 17-year conservatorship and injecting private capital into a crypto-friendly model. However, careful oversight is paramount: The Department of Labor’s neutral stance on crypto in 401(k)s offers a blueprint, but housing’s scale demands stress testing to avert broader contagion.

A Defining Moment for Crypto in Mainstream Finance

This FHFA directive exemplifies the Trump administration’s aggressive pivot toward crypto mainstreaming, from strategic Bitcoin reserves to ETP staking clarity. As Pulte’s order moves toward final proposals, it could redefine housing finance, stimulating economic activity while testing regulators’ mettle against innovation’s risks. For a nation grappling with affordability crises, crypto-backed mortgages promise inclusion but demand vigilance to safeguard the American Dream.

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