Federal Reserve Cuts Rates Again, SEC Proposes New Token Guidelines, and BlackRock Applies for Ether Staking ETF

Takeaways

• The Federal Reserve cut interest rates by 25 basis points on Wednesday, marking the central bank’s third consecutive decrease: The price of Bitcoin surged past $94,000 before paring gains after Federal Reserve chairman Jerome Powell said he needed more data before setting a course for 2026.
• SEC Chair Paul Atkins set out a significant agenda at the Blockchain Association Policy Summit to clarify the regulator’s approach to digital assets, including a proposed innovation exemption: Atkins made clear that the time-limited innovation exemption could be ready as soon as next month.
• BitMine Immersion Technologies reported this week it has acquired an additional 138,452 ether: The purchase lifted the firm’s ether holdings to 3.86 million tokens, marked its biggest ever single-week purchase, and pushed BitMine’s share of circulating ether above 3.2%.
• Strategy purchased an additional 10,624 BTC for roughly $163 million at an average price of $90,615 between December 1 and December 2: The latest addition raises the firm’s disclosed holdings to 660,624 BTC with an aggregate book cost of $49.4 billion.
• BlackRock submitted a registration to the SEC for a staked ether ETF called the iShares Staked Ethereum Trust: The move is believed by many to signal that the firm is preparing a yield-bearing ETH product, if approved by regulators.

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Fed Cuts Rates for Third Consecutive Month, Gives Mixed Message on Future

Federal Reserve chairman Jerome Powell declined to commit to more rate cuts in 2026, citing the delayed November inflation and jobs report data. "We're going to get a great deal of data between now and the January meeting — the data we get will factor into our thinking. We’re well positioned to wait and see.”

Fed officials voted 9-3 in favor of the rate cut on Wednesday, with two arguing for no change and another saying the central bank should cut by 50 basis points. Generally, lower interest rates are a boon for crypto prices that typically rise higher in a “risk-on” environment. The current benchmark rate is considered “neutral,” which neither stimulates or restrains the economy.

SEC Chair Atkins Tells Crypto the Best is Yet to Come

Atkins described that the coming months would be a turning point for the agency’s approach to the digital asset space, saying “You ain’t seen nothing yet.” He described the SEC to be seeding changes which will soon begin to “sprout” in the coming year.

Among the changes proposed was a token taxonomy which would clearly differentiate security from non-security cryptocurrencies. Additionally, Atkins hinted at imminent updates to the so-called “Project Crypto” which aims to modernize rules for digital assets. Perhaps most significantly, Atkins signalled that the highly anticipated "innovation exemption,” which could lower compliance costs and make innovation easier to crypto companies, could be implemented next month.

In other regulatory news, the Commodities Futures Trading Commission (CFTC) announced Thursday the agency is withdrawing outdated guidance on the delivery of virtual currencies. The move will enable the CFTC to enact the recommendations given by the President's Working Group on Digital Asset Markets.

BitMine Buys Additional 138, 452 ETH Pushing Holdings to 3.85 Million ETH

This latest purchase was valued at around $435 million and pushed the firm’s total holdings to approximately 3.86 million ETH. BitMine is now in control of more than 3.2% of the total circulating supply of ether.

BitMine has been making frequent incremental purchases, buying 54,000 ETH roughly a month ago, followed by further purchases of 97,000 ETH and 70,000 ETH. The firm’s cash holdings have also been increased to reach roughly $1 billion, while its crypto holdings sit at $13.2 billion, which also includes a small bitcoin position.

BitMine’s stock (BMNR) is one of the most actively traded stocks in the US, with an average daily trading volume of $1.8 billion. If the price of ether continues its recent positive movements, it could prove beneficial for BitMine’s share price.

Strategy Buys Additional 10,624 BTC, Boosting Treasury to 660,624 BTC

The total cost of the purchase was roughly $963 million. The purchase lifts the firm's total holdings to 660,624 BTC, with a total book cost of around $49.4 billion, acquired at an average of $74,696.

The vast majority of the purchase was funded through at-the-market sales of the firm’s Class A common stock which covered around $928 million. The remainder of the deal was financed by proceeds from the perpetual preferred shares, which were sold for just under $34.9 million. This latest acquisition push comes as Strategy continues to be scrutinized by some for its business model. The Digital Asset Treasury, or “DAT”, sector has recently undergone a repricing, with Strategy’s CEO Phong Le stating recently that the firm would sell bitcoin as a last resort if needed. For now however, Strategy shows no signs of slowing down its purchases.

BlackRock Files Registration With SEC for iShares Staked Ethereum Trust ETF

It is widely believed that the registration implies the asset management giant is preparing to launch a yield-bearing ether ETF, which would offer its investors both price exposure and the ability to receive staking rewards through a single fund.

Blackrock already operates the most successful spot ether ETF in the US in the form of its iShares Ethereum Trust ETF (ETHA) with an AUM of around $15.7 billion. The filing also said that staking would only be implemented if it can be done without creating increased regulatory or tax risks, which could limit the funds capabilities. A positive assessment of the product by the SEC could signal a green light for more crypto ETFs providers to offer similar yield generating products.

-Team Gemini