According to Cointelegraph, the European Commission has announced the addition of 41 authorities and regulators to the second cohort of its European Blockchain Sandbox Initiative (EBSI). These regulators hail from 22 countries within the European Union and the European Economic Area, including France, Spain, The Netherlands, Italy, Greece, Slovenia, Germany, Cyprus, Portugal, Bulgaria, Belgium, Denmark, Norway, Latvia, Malta, Poland, Hungary, Slovakia, Iceland, Liechtenstein, Lithuania, and the Czech Republic.

The EBSI was launched to support use cases involving distributed ledger technology (DLT) and aims to provide a framework for blockchain projects, regulators, and authorities to engage in dialogue. This initiative seeks to identify legal and regulatory obstacles to blockchain innovation and increase regulatory certainty for decentralized technology solutions. The European Commission stated that the sandbox will allow regulators and supervisors to enhance their knowledge of cutting-edge blockchain technologies. Legal advice and regulatory experience will be provided in a safe and confidential environment.

Each year, the EBSI will support 20 projects that build use cases based on blockchain technology. These projects will be selected based on criteria such as business maturity, legal relevance, and contribution to EU policy priorities. The selected projects will receive legal and regulatory advice from the law firm Bird & Bird and will have the opportunity to discuss regulatory questions with participating regulators.

On June 13, the EBSI announced the companies selected to join its second cohort. These companies have use cases ranging from real-world asset (RWA) tokenization to blockchain-based digital passports. Among the selected projects is Iota, a crypto ecosystem and open-source distributed ledger. Iota stated that being selected for the EBSI is a significant milestone for its identity solution, opening the door to discussions on KYC and privacy in Web3. This is particularly relevant as many regulators are currently considering their approach to decentralized finance (DeFi).

The post US FED Interest Rate Decision Day : Will This Spark a Crypto Rally or Crash? appeared first on Coinpedia Fintech News

Get ready for a market shake-up! As the Federal Reserve prepares to announce its interest rate decision on September 18, 2024, market participants face unprecedented uncertainty. Yesterday, The Kobeissi Letter underscored this uncertainty, projecting a 50 basis point cut with a probability ranging from 2% to 59%. This crucial decision will significantly impact various asset classes, including cryptocurrencies, which are bracing for substantial movements based on the Fed’s actions.

So buckle up—big changes are on the horizon!

Impact of Fed Rate Cut Predictions 

Joe McCann, CEO of Asymmetric, a prominent crypto hedge fund, has weighed in on the potential impacts of the Fed’s decision. With the Fed set to reduce rates from their 24-year high of 5.5%, there is a debate between a 25 basis point (bps) cut versus a 50 bps cut. McCann suggests that a substantial 50 bps reduction could boost risk assets, including crypto. This scenario aligns with historical patterns where significant rate cuts have positively influenced market dynamics, supporting a broader rally across risk assets.

However, on the flip side, McCann warns that a smaller 25 bps cut might not favor the crypto market. The current market optimism, reflected in recent high asset prices, is largely based on the expectation of a 50 bps cut. If the Fed opts for a smaller reduction, McCann predicts that both equities and cryptocurrencies could take a nosedive. This scenario could lead to a market adjustment, potentially causing a sell-off across various asset classes.

Catalyst for Market Movements

Market sentiment is strongly influenced by the anticipation of the Fed’s decision. Saad Ahmed, head of Asia Pacific at crypto exchange Gemini, points out that while the anticipated rate cut may already be priced into the market, a 50 bps reduction could act as a catalyst for breaking out of existing price ranges. This could reignite a risk-on sentiment, favoring assets like cryptocurrencies that thrive on lower interest rates and increased liquidity.

Historical Context and Economic Stability

McCann challenges the perception that a 50 bps cut would be bearish, noting that past significant rate cuts during economic crises have had various effects on the markets. In contrast, the current economic environment, marked by stable 3% GDP growth, might support a larger cut’s positive impact. This backdrop adds a layer of complexity to the market outlook.

As the Fed’s decision looms, its implications for the crypto market remain a focal point of speculation and analysis. With the potential for either a major boost or a setback, investors and traders are closely monitoring the developments, ready to respond to the outcomes of this pivotal decision.

Which will the Fed choose—50 or 25 Bps? You’ll know! Stay tuned.

According to Foresight News, Sushi has announced a partnership with token issuance platform Goat Trading to introduce a new meme token issuance platform. The specific name of the platform has not been disclosed yet. This new platform will feature no MEV (Miner Extractable Value), zero slippage, and a 40% creator royalty. Additionally, a video released by Sushi indicates that the platform is set to launch on September 10 and will be based on the Base chain.