Crypto industry gains momentum despite Fed hike

Crypto industry gains momentum despite Fed hike

The markets have remained robust despite the latest 25 basis point hike by the Federal Reserve on Wednesday that has driven US interest rates to their highest level since 2001.

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 the pandemic-induced crash of March 2020.

The biggest non-pegged digital assets, BTC, ETH, and XRP, have all gained less than 1% in the past day.

When the Fed paused in June, it was expected to raise interest rates but foreshadowed further increases. Asgard Markets co-founder, Alex Kruger, emphasised that a more significant dynamic to focus on was the duration of the elevated rates.

The crypto industry has experienced a boost in regulatory waters with the House Financial Services and Agriculture Committees enacting a key piece of legislation thataims 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, said the move to push the FIT act forward a 'landmark moment' for the industry.

The FIT for the 21st century act is being considered by the full House of Representatives. If passed, the bill will go to the Senate.

The Financial Services Committee 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 people in the digital asset sector have said that these titles are difficult to comply with due to the nature of blockchain technology.

A day later, the committee passed the Clarity for Payment Stablecoins Act, another key bill that would provide a framework for compliance for stablecoin issuers. The next stop for the Stablecoin bill, which will go to the House for the first time, is a full House vote.

The Keep Your Coins Act, which deals with self-custodial wallets, also passed out of committee on July 27.