Here’s What Happened in Crypto Today
The US Fed is Ready to Step In If Liquidity Dries Up
The US Federal Reserve is standing ready to use its monetary policy tools to stabilize the financial markets if necessary. This declaration came from Boston Fed President Susan Collins, a voting member of the Federal Open Market Committee (FOMC), in an interview with the Financial Times.
Collins emphasized that the Fed will only intervene if liquidity dries up or markets experience significant disorder. While it’s common knowledge that the Fed is prepared to act swiftly to avert market chaos, her remarks come amidst recent asset selloffs in stocks and bonds, raising concerns about the health of the US financial system.
Collins noted that the Fed isn’t currently observing any liquidity concerns. However, she assured that policymakers possess “tools to address concerns about markets functioning or liquidity” should the situation change.
For investors, Collins’ comments carry significant weight as she is a voting member of the FOMC, the panel responsible for setting interest rates. While the FOMC decided to maintain interest rates steady at its March meeting, the key takeaway was the central bank’s easing of quantitative tightening by reducing the redemption cap on Treasurys by 80%.
New York Bill Proposes Legalizing Bitcoin and Other Cryptocurrencies for State Payments
New York state might soon be accepting Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as forms of payment for various state services. Assemblyman Clyde Vanel has introduced Assembly Bill A7788, seeking to amend state financial law to enable state agencies to accept these cryptocurrencies.
The bill outlines that state offices could authorize crypto payments for a wide range of obligations, including fines, civil penalties, rent, taxes, fees, charges, revenue, financial obligations, and even penalties, special assessments, and interest.
This legislation marks the second crypto-focused bill in New York in a short span. In March, Bill A06515 was introduced with the aim of establishing criminal penalties to combat cryptocurrency fraud and protect investors from rug pulls. This increasing focus on crypto legislation aligns with President Donald Trump’s commitment to making crypto policy a national priority and establishing the US as a global hub for blockchain innovation.
Trump Signs Resolution Killing the IRS DeFi Broker Rule
President Donald Trump has taken a significant step towards easing the regulatory burden on the decentralized finance (DeFi) industry by signing a joint congressional resolution to overturn a Biden-era rule that would have required DeFi protocols to report transactions to the Internal Revenue Service (IRS).
This so-called IRS DeFi broker rule was set to take effect in 2027 and aimed to expand the IRS’s existing reporting requirements to encompass DeFi platforms. It mandated these platforms to disclose gross proceeds from crypto sales, including information about the taxpayers involved in the transactions.
The resolution, which was backed by Representative Mike Carey, has been lauded as the first time a president has signed a crypto bill into law. Supporters of the resolution argued that the rule would have imposed overly burdensome regulations on decentralized platforms, hindering crypto innovation. Critics, however, viewed the repeal as creating a loophole for wealthy tax evaders.
Trump’s decision to sign the resolution was anticipated, as White House AI and crypto czar David Sacks had previously stated that the president supported killing the measure.
