On December 11, MUFG highlighted that the Federal Reserve reduced interest rates by 25 basis points in a 9-to-3 vote, with Chair Powell emphasizing labor market risks. The Fed projected that product inflation might peak by the first quarter of 2026 without the introduction of new tariffs, though risks of persistency remain. According to the latest dot plot, the Fed anticipates only one rate cut by 2026, contrasting sharply with market expectations of around 55 basis points. Powell stated that the Fed is in a strong position to observe U.S. economic trends with patience. MUFG further noted that possible leadership changes next year could complicate policy direction and heighten market uncertainties.

Two U.S. senators have called on the Department of Justice and Treasury to investigate World Liberty Financial, a cryptocurrency firm associated with the Trump family, over potential national security risks. CNBC reports that Senators Elizabeth Warren and Jack Reed raised concerns in a letter, citing alleged links between the firm and entities connected to North Korean hackers, sanctioned Russian tools, Iranian crypto exchanges, and Tornado Cash. The letter also referenced a report by Accountable.US, which alleged that WLFI tokens were sold to suspicious entities, highlighting inadequate safeguards against illicit activities.

The Federal Reserve unanimously approved a 25 basis point rate cut in October, but diverging views on future policy emerged after Chair Jerome Powell's comments on limited visibility and internal disagreement, Wall Street analysts said. Brandywine Global's Jack McIntyre noted labor market concerns outweigh persistent inflation, while unexpected dissent from officials like Schmid signals rising uncertainty and potential market volatility. LPL Financial's Jeffrey Roach and Carson Group's Ryan Detrick said weakening labor conditions could support further easing by December. Oxford Economics' Michael Pearce pointed to growing controversy over the pace of cuts amid sparse data and a surprise hawkish dissent from a regional Fed president.

The British Columbia government announced proposed legislation on Oct. 21 to limit power use by artificial intelligence data centers and permanently ban new cryptocurrency mining projects, Bloomberg reports. The province's energy department said grid connections will be prioritized for industries such as mining and natural gas facilities that generate higher employment and revenue. The move aims to ensure reliable energy supply for key economic sectors.

The Federal Reserve held a payment innovation meeting on Oct. 21, with representatives from Chainlink, Paxos, Circle and Coinbase in attendance, Cointelegraph reports. The discussion centered on technological advancements and innovative applications in the payments sector. Participating firms represent key roles in blockchain infrastructure and stablecoin issuance.

Oct. 18 — Ondo Finance has requested the U.S. Securities and Exchange Commission (SEC) to delay or reject Nasdaq's proposal on trading tokenized securities, citing insufficient disclosure of post-trade settlement mechanisms. According to the letter, Nasdaq relies on non-public information to describe the Depository Trust Company's (DTC) blockchain-based settlement process, creating an information imbalance that undermines fair review rights for other market participants. Ondo emphasized that a lack of public details on DTC's systems for reconciliation, recordkeeping, and risk management would hinder regulators and investors from fully assessing the proposal. While supporting Nasdaq's push for tokenization, Ondo called for greater transparency and open collaboration. Nasdaq submitted the proposal on Sept. 8, initiating a 45-day SEC review period on Sept. 22, which could be extended as late as December.