Trump Pledges Regulatory Clarity for Crypto, Doubles Down on 200 bps Rate Cut Call

Trump Pushes for Clear Crypto Rules at Coinbase Summit

On June 12, US President Donald Trump addressed the Coinbase State of Crypto Summit with a significant announcement for the cryptocurrency community.

In his speech, Trump emphasized his administration's commitment to fostering innovation in the crypto and Bitcoin sectors. He stated, "We will be working to create clear and simple market frameworks that will allow America to dominate the future of crypto and Bitcoin."

This statement highlights the administration's proactive stance toward developing a regulatory environment that supports the growth of blockchain and digital assets.

Complementing this vision, the new SEC Chairman delivered remarks at a DeFi roundtable on June 9, emphasizing a more accommodating regulatory approach. He noted, "Our goal is to create a regulatory framework that not only protects investors but also encourages innovation and growth within the DeFi space." This indicates a shift towards a more balanced regulatory environment that could further support the burgeoning crypto industry.

Economic Policy and Crypto Market Impact

On June 11, Trump called for a 100 bps interest rate cut by the Federal Reserve, citing a better-than-expected CPI figure as justification. The CPI data revealed a 2.4% inflation rate for May, which was lower than anticipated.

Furthering his stance, just one day later on June 12, Trump escalated his call for monetary easing, advocating for a 200 basis point interest rate cut. This bold proposal came in response to newly released labor market data. Yahoo Finance's data shows: 248,000 Americans filed initial jobless claims last week, unchanged from the prior week and above expectations of 242,000. Continuing jobless claims rose to 1.956 million, the highest level since November 2021, as weekly filings remained at an eight-month high.

Ophir Gottlieb, CEO of CMLviz, commented on the labor data: "I'm just going to say it, I think the labor market is not as strong as people think." He highlighted key figures, noting that continuing jobless claims of 1.956 million exceeded the estimate of 1.910 million and were significantly higher than the prior figure of 1.902 million. Similarly, initial jobless claims of 248,000 matched the previous week's count but surpassed the 240,000 estimate, marking the highest level since October 2024. These figures suggest that the labor market may be showing signs of strain, challenging the perception of its resilience.

Trump emphasized that the combination of subdued inflation and a labor market under pressure necessitated more aggressive monetary measures to stimulate growth and maintain competitiveness. This move underscores the administration's focus on leveraging monetary policy to address both inflation and employment concerns.