Federal Reserve Cuts Rates Again, Altcoin ETFs Go Live, and Mt. Gox Delays Creditor Repayment

Takeaways

• The Federal Reserve has enacted the second interest rate cut of 2025, bringing the federal funds range down by 25 bps to the 3.75%- 4% range: Fed chairman Jerome Powell cited the slowdown in the US labor market as the reason for the cut but stopped short of promising another cut in December.
• Four altcoin spot ETFs, including one tracking Solana, are scheduled to begin trading in the US this week: The listings were aided by new generic listing standards and managed to go live despite SEC operations being restricted during the US government shutdown.
• JPYC Inc. has launched Japan’s first legally recognized yen-pegged stablecoin, JPYC: The firm claims that the token is 100% backed by yen reserves and has compatibility for a number of blockchains including Ethereum and Avalanche.
• The Mt. Gox trustee has delayed the creditor repayment deadline for a third time, just four days before the originally planned deadline: The new deadline has been set for October 31, 2026, with many creditors yet to receive their reimbursement.
• President Donald Trump has nominated Mike Selig, head of the SEC Crypto Task Force, as nominee to lead the CFTC: If confirmed by the Senate, Selig would take the helm as Congress and regulators move to expand the body’s oversight of the digital asset sector.

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Federal Reserve Cuts Rates For Second Time This Year

However, Powell dampened hopes the Federal Open Market Committee would lower interest rates again at their final meeting in December.

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell said. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”

The Fed is at a difficult inflection point, in part because they have to contend with the lack of data as a result of the US government shutdown. On Wednesday, Powell cited a weakening labor market for the 10-2 vote in favor of cutting rates by 25 bps, with one dissenter arguing for a more aggressive cut and another arguing for no rate cut at all. However, he acknowledged that inflation has remained slightly elevated above the Fed’s 2% target.

Despite the cut, the price of bitcoin dropped amid a broader pullback in tech stocks and crypto, pulling back below $108,000 by mid-day Thursday.

Altcoin US ETFs Launch, With Solana, Litecoin, Hedera Among Tracked Assets

Canary Capital’s Litecoin and Hedera ETFs listed on the Nasdaq on Tuesday and Greyscale’s Solana Trust converted into an ETF on Wednesday. Bitwise spot SOL ETF and BSOL also went live on Tuesday.

Canary Capital’s HBAR and LTE ETFs did not share the same success. The funds reported $0 in flows on their debut, but some analysts have pointed out that shares in this type of fund typically have to be redeemed in large quantities, which can make $0 flow-days not uncommon.

The listings of these ETFs were aided by newly applied generic listing standards for commodity-based trusts implemented by the SEC. Additionally, the use of 8-A filings, which offer alternative routes to registration, made the listing of these funds more achievable. Industry participants also noted that these funds were able to list in spite of the US government’s ongoing shutdown limiting the SEC’s functionality.

Japan’s JPYC Launches First Legal Yen-Backed Stablecoin

The token has launched with compatibility with several blockchain protocols, including Ethereum and Avalanche, and the firm claims that every token is 100% backed with yen reserves.

The firm also launched a dedicated issuance and redemption portal, JPYX EX, which allows users to buy or redeem the token after completing identity verification checks. A number of Japanese firms have already indicated interest in using the stablecoin as part of their operations. Densan System Holdings is among the larger companies signaling adoption, which plans to use the token for retail and e-commerce payments.

With a target of roughly $65.5 billion in circulation in three years, the firm has high ambitions regarding adoption levels. With Japan’s regulators taking steps to formalize oversight of the space however, the country’s stablecoin sector could be fostered into further growth. The project said it aims to expand the token’s blockchain compatibility, and collaborate with new partners in the coming years.

Mt. Gox Trustee Delays Creditor Payouts By One Year, Just Days Before Deadline

The trustee announced the deadline would now be extended to October 31, 2026, arguing it is necessary to allow creditors more time to complete eligibility forms, amongst other tasks. Many creditors have yet to receive their reimbursements.

This latest delay is the third, with the original repayment deadline initially set at October 31, 2023. After a massive security breach in 2014, the defunct exchange is still attempting to partially reimburse its users after halting withdrawals, with 142,000 BTC in the process of being dispersed amongst other assets. This sum however is only a small fraction of the 850,000 BTC lost in the security breach. Currently, Mt Gox is reported to still hold 34,689 BTC, which is worth over $4 billion.

President Trump Selects Head of SEC Crypto Task Force Mike Selig as CFTC Nominee

The White House announcement said Selig has deep experience in both traditional finance and crypto, and cited him as a significant driver of the “President’s crypto agenda.”

In an X post, Selig said he was “honored” to be nominated and said he would “work tirelessly” in the position. Selig has also previously worked at the CFTC under the leadership of former chairman Chris Giancarlo. The CFTC has historically had a more welcoming regulatory approach to crypto in comparison to the SEC, notably classifying bitcoin as a commodity in 2015. A number of ex-CFTC officials have also joined the boards in the crypto sector in recent years, including its former chairman Chris Giancarlo.

-Team Gemini