Global markets have remained resilient despite the latest 25 basis point hike by the Federal Reserve on Wednesday pushing US interest rates to their highest level since 2001.
Major equity indices like the S&P 500 and Nasdaq are consolidating near yearly highs, while the VIX, a widely watched measure of stock market volatility, continues to trend downwards and reached its lowest level since before the pandemic-induced crash of March 2020.
The largest non-pegged digital assets, BTC, ETH, and XRP have all gained less than 1% in the past day.
The rate hike was largely expected after the Fed paused in June but foreshadowed further increases. Alex Kruger, co-founder of advisory firm Asgard Markets, emphasized that a more important dynamic to focus on was the duration of the elevated rates.
House Committees Advance Crypto Regulation Bill
The crypto industry did receive a boost on the regulatory front after the House Financial Services and Agriculture Committees voted to go forward with a key piece of legislation which stands to provide a generalized framework for how digital assets should be regulated in the United States.
Kristin Smith, CEO of the Blockchain Association, a leading crypto lobbying group, called the move to push the FIT act forward a “landmark moment” for the industry, in a statement shared with The Defiant.
The next step for the FIT for the 21st Century Act is consideration by the full House of Representatives. If passed, the bill will move on to the Senate.
The Financial Services Committee also approved the Blockchain Regulatory Certainty Act, which would exempt blockchain developers and associated services from being treated as “money transmitters” or other financial institutions under the law. Many in the digital asset space have claimed that these designations are difficult to comply with given the nature of blockchain technology.
The Committee is also deliberating over the Clarity for Payment Stablecoins Act, another key bill which would provide a framework for compliance for stablecoin issuers.
It’s widely expected that the stablecoin bill, in addition to the Keep Your Coins Act, which deals with self-custodial wallets, will both pass out of committee to a full House vote.