Wed. AM-PM Seeds of Wisdom Crypto Update(s) 5-7-25

(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)

Seeds of Wisdom

HOW DO TRUMP TARIFFS IMPACT THE FED INTEREST RATE DECISION TODAY?

The Federal Reserve is expected to keep interest rates steady this week, with a 95% chance of no changes, as it adopts a cautious “wait and see” approach.

Despite a slow economy in Q1, inflation remains slightly above the 2% target, while unemployment stays low, giving the Fed more time to assess market conditions. The FED interest rate decision is crucial, as the Trump tariffs and ongoing US-China trade talks could influence future actions.

Trump Tariffs and Trade Optimism

The latest Trump tariffs and trade discussions between the US and China are bringing renewed optimism to the market. Credit Suisse analyst Ipek Ozkardeskaya notes that improving trade relations could boost risk assets and revive investor confidence in the US dollar. While the dollar didn’t surge during the peak of the tariff war, a shift in sentiment could drive its near-term performance.

FED to Stay in “Wait and See” Mode

The Federal Reserve remains focused on data, with many expecting no immediate rate cuts. As the Fed weighs Trump’s tariffs and a $4 trillion budget plan, it will likely hold off on making any drastic decisions. Although inflation is still above 2%, the FED interest rate decision will depend on the ongoing trade talks and economic trends.

Dollar Could Rebound Amid Trade Optimism

Trade optimism surrounding Trump tariffs and negotiations could potentially lift the dollar, shifting from a safe-haven narrative to broader confidence. Ozkardeskaya believes that this shift could reignite demand for the US dollar, marking a key development as the FED interest rate decision looms.

FED Interest Rate Decision

With little indication of drastic shifts in the economy, Fed Chair Jerome Powell is expected to keep messaging minimal, even as President Trump pushes for rate cuts. Analysts predict that the Fed may only cut rates if the labor market weakens significantly.

@ Newshounds News™

Source: Coinpedia

~~~~~~~~~

ETHEREUM’S ‘PECTRA’ NETWORK UPGRADE GOES LIVE: WHAT TO EXPECT

Ethereum developers have activated the network’s Pectra upgrade, bringing smart accounts, higher staking limits and improved scalability through key EIPs.

Ethereum — the network that unleashed smart contracts on the world — moves on to the next chapter with today’s Pectra upgrade, but what does it mean?

Pectra went live on the Ethereum mainnet at the start of epoch 364032, May 7, 2025, at about 10:00 am UTC. The three main Ethereum improvement proposals (EIPs) included are EIP-7702, EIP-7251, and EIP-7691.

EIP-7702 allows externally owned accounts to act as smart contracts and cover gas expenses (transaction fees) and payments in tokens that are not Ether.

EIP-7251 increases the validator staking limit from 32 ETH to 2,048 ETH, simplifying operations for large stakers.

EIP-7691 increases the number of data blobs per block, allowing for better layer-2 scalability and potentially significantly reduced transaction fees.

Sergej Kunz, co-founder of Ethereum DEX aggregator 1inch, said Pectra “introduces ‘smart account’ functionality” at deeper protocol levels and “improves Ethereum’s scalability” through layer-2 solutions.

0xAw, lead developer at Base Ethereum layer-2 DEX Alien.Base, told Cointelegraph that EIP‑7702 is a “potentially great addition for Ethereum.” He said that account abstraction has struggled due to wallet switching requirements.

The positives of adopting this include:

• Getting rid of approval flows
• Not having to sign each transaction
• Segregated permissions and actions
• Automations on behalf of the user

“It enables a Web2-like UX by hiding many of the underlying scaffolding from users,” 0xAw added.

Kunz said the update will pave the way for native gasless transactions and simplified user flows.
Ivo Georgiev, CEO of smart wallet Ambire, noted:

• “No more infinite ERC-20 approvals”
• “Users won’t need native currency like ETH to pay gas fees”

He added:
“Following this, the UX will be reworked completely… wallets give more limited abilities to apps, increasing overall security — for example, no wallet popup every time you interact with OpenSea.”

Still, not without risks.
0xAw cautioned: “Users have one more dangerous thing they could sign, which would be even more damaging than an approval to wallet drainers.”

Mike Tiutin, CTO of PureFi, warned:
“Drainers proved that users will sign ‘harmless’ messages in cloned DApps. EIP-7702 expands that trick from one token to the whole wallet.”

Georgiev remains optimistic, saying:
“Confident there will not be a tangible increase in risk… the industry knows how to create a secure contract, especially with such a minimal scope as an EIP-7702 delegation.”

Easier Institutional Staking

Artemiy Parshakov, VP of institutions at P2P.org, said:
“EIP-7002 makes institutional staking much easier to integrate without taking too much risk.”

Before Pectra:

• Stakers needed a signed message from their provider to exit
• Couldn’t exit without provider participation
• Had to wait ~13 hours to generate exit message

Now with Pectra:

• Exit delay reduced to ~13 minutes

Supply Validator Deposits Onchain

EIP-6110 enables the e-------n-layer block to carry validator deposit data to the consensus layer.
Previously:

• Consensus clients waited for Merkle root votes from block proposers
  Now:
• E-------n layer directly includes new verifier deposits

This upgrade affects the deep Ethereum consensus layer and follows bugs on Holesky and Sepolia testnets.

Parshakov concluded:

“Our biggest concerns are client bugs, but we trust the Ethereum Foundation and client teams are working to prevent issues on mainnet.”

@ Newshounds News™

Source: CoinTelegraph

~~~~~~~~~

Source: Dinar Recaps

=======================================

REP. TORRES TO INTRODUCE BILL BANNING TRUMP, LAWMAKERS FROM CASHING IN ON MEMECOINS AND STABLECOINS

• The bill, called the Stop Presidential Profiteering from Digital Assets Act, would make it unlawful for someone to create, issue or promote a digital asset that “uses the name, likeness, image, or other recognizable traits of a covered individual.”
• Some D-------s have aired major concerns over Trump’s involvement in crypto, which has created tension as they and their Republican counterparts work on legislation to regulate digital assets.

Rep. Ritchie Torres, D-N.Y., plans to introduce legislation that would block President Donald Trump, future presidents, and members of Congress from “profiteering” on memecoins and stablecoins.

The bill, called the Stop Presidential Profiteering from Digital Assets Act, would make it unlawful for someone to create, issue or promote a digital asset that

“uses the name, likeness, image, or other recognizable traits of a covered individual,” 

in a message sent by Benny Stanislawski, a spokesman for Rep. Torres, to The Block.

The legislation defines a “covered individual” as a current or former U.S. president, vice president, member of Congress, or any presidentially appointed and Senate-confirmed federal official, along with their immediate family members.

The move comes amid growing criticism among D-------s about Trump’s involvement in crypto, which has created tension as they and their Republican counterparts work on digital asset regulation.

Since late 2024, Trump and his family have embraced digital assets, launching their own memecoins shortly before his 2025 inauguration. His affiliated venture, World Liberty Financial, recently launched its own stablecoin. 

Trump also hosted a crypto-themed fundraiser Monday night for the MAGA Inc. super PAC, and is hosting a gala later this month for the top 220 owners of his memecoin.

On Tuesday, Sen. Richard Blumenthal, D-Conn., sent letters to World Liberty Financial and Fight Fight Fight LLC, the company behind Trump’s memecoin, to investigate potential conflicts of interest related to Trump’s crypto activities.

Torres has shown support for crypto. In March, he and Republican House Majority Whip Tom Emmer created the “Congressional Crypto Caucus” aimed at advancing bills in Washington. Torres also pushed back on the U.S. Securities and Exchange Commission’s approach to regulating crypto last year.

@ Newshounds News™

Source: The Block

~~~~~~~~~

TRUMP FACES SENATE SUBCOMMITTEE INQUIRY OVER ‘CRYPTO C--------N’

Opposition lawmakers continue to criticize the president’s crypto ambitions.

• D--------c Senator Richard Blumenthal has opened an investigation into President Trump’s crypto businesses.
• Blumenthal has alleged that the launch of the Trump meme coin is unethical.
• President Trump has a number of digital asset ventures that draw ire from D-------s.

D--------c senator Richard Blumenthal is investigating how President Donald Trump’s crypto business ventures are potentially violating federal laws.

U.S. Senator Richard Blumenthal said Tuesday that President Trump’s meme coin launch and other crypto industry ventures represent

“an unprecedented, pay-to-play scheme to provide access to the Presidency to the highest bidder.“

Blumenthal announced that the Senate Permanent Subcommittee on Investigations would be opening a preliminary inquiry into the launch of the president’s cryptocurrency, Official Trump, along with DeFi platform World Liberty Financial and the president’s other digital asset interests.

“Chillingly, TRUMP allows, and even invites, anyone in the world, including foreign governments and unscrupulous individuals, to directly enrich the president, while hiding potential payoffs in the pseudonymity of the blockchain,” Blumenthal said in his announcement, quoting a letter he wrote to the developer of the Official Trump cryptocurrency, Bill Zanker.

The new commander-in-chief ahead of his January inauguration launched a Solana-based meme coin called Official Trump—which trades as TRUMP—and it quickly soared in value before crashing. It’s now down 85% from its peak price.

D-------s have alleged that the new commander in chief has profited from the virtual coin’s launch, but the president has denied this and avoided questions on the matter.

The president is also associated with an Ethereum-based decentralized finance project, World Liberty Financial. Trump’s sons, Eric and Donald Jr., first announced the project last year, and the then-Republican nominee promoted the project on social media ahead of his e------n win.

Decrypt in March reported that the president and his associates had pocketed around $390 million in revenue from promoting World Liberty Financial.

In April, President Trump also announced a private dinner later this month at his Washington-area golf club for the top 220 holders of his meme coin, plus a private reception and a White House tour for other investors.

The announcements have drawn ire from D--------c lawmakers, who claim that promoting the meme coin is c-----t. House D-------s walked out of a hearing Tuesday about impending crypto industry legislation, due to complaints over Trump’s perceived crypto conflicts.

President Trump campaigned ahead of his November win to help the digital asset industry and received backing from crypto entrepreneurs and Silicon Valley hotshots and members of the “PayPal m---a“, including current White House AI and crypto czar David Sacks and Tesla CEO Elon Musk.

@ Newshounds News™

Source: Decrypt

~~~~~~~~~

Source: Dinar Recaps

=======================================

FED HOLDS RATES STEADY AS IT NOTES RISING UNCERTAINTY AND STAGFLATION RISK

• The Federal Reserve held its key interest rate unchanged in a range between 4.25%-4.5%, where it has been since December.
• The post-meeting statement noted the recent market volatility and how that is factoring into the central bank’s policy decisions.
• “Uncertainty about the economic outlook has increased further,” the statement said.

WASHINGTON — The Federal Reserve on Wednesday held its key interest rate unchanged as it waits for the T------------------n’s trade policy to take shape and sees its impact on a sputtering economy.

In a move that carried little suspense given the wave of uncertainty sweeping the political and economic landscape, the Federal Open Market Committee (FOMC) held its benchmark overnight borrowing rate in a range between 4.25%-4.5%, where it has been since December.

The post-meeting statement noted the volatility and how that is factoring into policy decisions.

“Uncertainty about the economic outlook has increased further.“

“The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”

While the statement did not specifically address the tariffs, Chair Jerome Powell addressed the issue at his post-meeting news conference.

Stocks briefly ceded some gains after the rate announcement but mostly recovered, with the Dow Jones Industrial Average up nearly 300 points despite some worries over the Fed’s characterization of the economic risks.

“The May FOMC statement in effect warns that a large trade shock is still set to hit the economy in spite of efforts by the T------------------n to deescalate…”
— Krishna Guha, Head of Global Policy and Central Bank Strategy at Evercore ISI

“…with the Fed seeing the risks ahead as two-sided and not providing any early dovish lean in favor of a June rate cut.”
“The net implications for risk assets are negative.”

A possible stagflationary scenario

Finding the balance between the two elements of the Fed’s so-called dual mandate of full employment and stable prices has become more difficult amid President Donald Trump’s tariff push.

In noting that tariffs threaten to aggravate inflation as well as slow economic growth, the statement raises the possibility of a stagflationary scenario largely absent from the U.S. since the early 1980s.

Policymakers have largely agreed that the central bank is in a good position, with the economy generally holding up, to be patient as it calibrates monetary policy.

Powell emphasized this during the press conference:

“The economy itself is still in solid shape.”

Trade Talks in Focus

The Fed’s deliberations come as the White House is locked in negotiations with top U.S. trading partners during a 90-day negotiating period that began in early April. Trump slapped 10% across-the-board tariffs on U.S. imports and threatened other “reciprocal” duties pending ongoing talks.

As near-daily headlines gauge the trade war, the economy has been flashing conflicting signals on growth, inflation, and consumer and business sentiment.

• Gross domestic product (GDP) fell 0.3% in the first quarter
• Slower consumer and government spending and a surge in imports ahead of tariffs
• Most economists expect a return to positive growth in Q2

The FOMC noted that “swings in net exports have affected the data,” while maintaining its view that the economy “has continued to expand at a solid pace.”

Indeed, job growth has held up despite Trump’s efforts to pare down the federal workforce:

• Nonfarm payrolls increased by 177,000 in April
• Unemployment rate held at 4.2%
• Inflation is approaching the Fed’s 2% target

However, tariffs are expected to lead to at least a one-time rise in prices. Trump has urged the Fed to cut rates as inflation has eased. The Fed’s preferred inflation gauge showed:

• Headline inflation at 2.3%
• Core inflation (excluding food and energy) at 2.6%

As with all aspects of the economy, it all depends on what happens with tariffs.

Market Reactions & Outlook

Recent signs of progress in negotiations and some softening from the administration helped reverse a major stock market sell-off after the April 2 “liberation day” announcement from Trump.

However, business surveys continue to show high anxiety—most managers report concerns about supplies and pricing from the tariffs.

Market pricing regarding Fed action has been volatile:

• Heading into the meeting:
  • Virtually no chance of a rate cut this week
  • <30% probability of a June move
  • Next cut expected in July
  • Three cuts priced in for the year

The committee’s decision to hold the benchmark rate steady was unanimous.

The federal funds rate, used by banks for overnight lending, also affects mortgages, auto loans, and credit cards.

@ Newshounds News™

Source: CNBC

~~~~~~~~~

US TREASURY SECRETARY EXPRESSES SUPPORT FOR CRYPTO BILLS AT HEARING

Scott Bessent suggested support for the stablecoin and market structure bills being considered in Congress in response to a question about China.

Speaking at a hearing, US Treasury Secretary Scott Bessent suggested support for two crypto-related bills moving through Congress.

Bessent addressed lawmakers at a May 7 hearing of the House Financial Services Committee, saying that the United States should be the:

“premier destination for digital assets”

in response to a question about American dominance over China in crypto-related innovation. The Treasury Secretary added that:

“good market structure” and “stablecoin legislation” could help ensure this outcome.

Bessent’s remarks echoed those of other Republican lawmakers and President Donald Trump, who initially claimed he wanted to make the US the:

“crypto capital of the world”

during his 2024 campaign. The Treasury Secretary was likely referring to:

• the draft of a digital asset market structure bill released by House Republicans on May 6
• the GENIUS bill to regulate stablecoins, expected to be taken up for a Senate vote on May 8

The Treasury Secretary, a Trump nominee, has supported the president on key crypto policy actions, including:

• an executive order to establish a sovereign wealth fund
• participation in a working group exploring federal stablecoin regulations and a national crypto stockpile

He also stated during a confirmation hearing that he would oppose the creation of a US central bank digital currency while in office.

D-------s Push Back on Crypto Bills Amid Memecoin Dinner Controversy

Even before Trump announced plans to hold an exclusive dinner and VIP tour for top memecoin holders, he faced scrutiny over alleged conflicts of interest tied to his crypto ventures.

The dinner announcement seemed to galvanize D-------s against any crypto-related legislation.

Representative Maxine Waters, ranking member of the House Financial Services Committee, led a walkout of the May 6 hearing on the Republican-drafted market structure bill, citing the need to explore:

“Trump’s crypto c--------n”

Additionally, nine Senate D-------s stated they will not support the GENIUS stablecoin bill in its current form, demanding:

• stronger Anti-Money Laundering protections
• tougher oversight on foreign issuers
• improved national security safeguards

It remains unclear whether Republicans, who control both chambers of Congress, will have enough votes to pass either bill.

@ Newshounds News™

Source: CoinTelegraph

~~~~~~~~~

Source: Dinar Recaps

______________________________________________________

If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

Copyright © Dinar Chronicles