A very exciting week. It’s “Crypto Week.” Or, if you are a Democrat, it’s anti-crypto week. Can’t quite figure that one out but not surprised. Anyway, Crypto Week (self described by the House of Representatives) is when a slew of bills are to be voted on to make cryptocurrencies more mainstream and ease regulations. It’s big.
By the end of the week the “Genius Act,’ the “Clarity Act” and the “Anti CBDC Surveillance Act” should be passed in the House (see this week’s Al & Ivy podcast for deep details). The passage of these bills is expected to be extremely bullish for all things crypto. It will make innovation and further development of digital assets easier with regulations and guidelines set in place.
Financial advisors and wealth managers will be able to recommend to clients an investment in crypto ETFs and managed funds. Stablecoins will have a legal structure to follow. A CBDC (Central Bank Digital Currency) will (if even needed) have “rails” and strict surveillance rules so as to restrict what a government will have access to in your personal information. All spelled out clearly (of course, a lawyer will always find a loophole). It’s big.
Now, should there be any doubt about these acts being approved, consider President Trump’s Truth Social (or subsidiary) announced last week it will launch a crypto ETF that will invest 70% in bitcoin, plus ether and a smattering of a couple other tokens. Hmmmmm! I’m betting approval of everything.
As exciting as things are in the crypto world, the mood over at Treasury is much different. Fed Chair Jerome Powell is having a very hard time waking up every day in a good mood. First, his track record the last few years have not been stellar (so inflation wasn’t transitory) and his reputation is tarnished……..really tarnished.
Next, J. Powell is under huge pressure to “step aside” (a/k/a quit – or “spend more time with his family”). President Trump is all over J.P. for not cutting interest rates and wants him out. However, Trump can’t legally fire him. Good news for J.P? Nope. Looking for a “loophole” to get the Fed Chair out, J.P. is being criticized for over spending on office/building renovations (what? I can’t have that fancy $200k desk?).
Lastly, Trump is considering a shadow Fed if J.P. holds on. Kind of like having someone hanging over your shoulder and criticizing your every move. Yuck.
So the Fed Chair has a dilemma. He can “stick to his guns” and do what he feels is right. No easing until further notice, sit behind his OLD desk and stick his tongue out at the President. OR, he could cut rates which would cause a huge massive rally in the stock market, weaken the dollar making U.S. goods cheaper around the globe and raking in tariff money, making mortgages more affordable for housing and then……..step aside. Retire a hero to investors. Then go into hiding before things go wrong (or join Goldman Sacks – they’re used to those problems).
Quite a dilemma. Good luck, Mr. Powell.
Bill Taylor is the CEO and Chief Market Strategist at Digital Wealth News, offering expert insights on markets and asset classes. A proud Horned Frog and Texas Christian University grad, he played college basketball while there. With a strong finance background and passion for digital innovation, Bill shares thought leadership on market trends and portfolio strategy for our audience.
