Crypto Market Update: World Liberty Gains Coinbase Approval with New Stablecoin Listing
August 22, 2025 – The cryptocurrency market experienced notable gains on Friday following positive developments both within the crypto sector and from U.S. Federal Reserve signals, highlighted by the approval of World Liberty Financial’s stablecoin, USD1, for listing on Coinbase.
Bitcoin and Ether Surge on Fed’s Interest Rate Signals
Bitcoin (BTC) saw a strong rally, rising 3.9% over the course of the day to a price of approximately $116,546 as of 9:00 p.m. UTC. Bitcoin’s price jumped sharply from $112,000 to around $116,000 within just over an hour, after Federal Reserve Chair Jerome Powell’s commentary at the Jackson Hole Symposium suggested the Fed may consider lowering interest rates at its September meeting.
Powell characterized the current economic environment as a "curious balance" in the labor market, noting both risks stemming from reduced worker supply and increased demand for employment. He observed that tariff impacts on consumer prices are likely to be temporary, but signaled caution over persistent inflation risks. The Fed’s updated stance removed language that previously indicated tolerance for inflation above the 2% target and revised its monetary policy approach to allow more flexibility in managing the economy’s dual mandates.
According to CME Group’s FedWatch Tool, the probability of an interest rate cut at the Federal Open Market Committee’s September 17 meeting surged to over 83%, up from 75% the day before.
Ether (ETH) outpaced many altcoins with a 14.5% increase, trading above the $4,843 mark and surpassing the $4,600 resistance level. Analysts noted the formation of a bullish pattern with potential targets around $6,000. ### Strong Performance Across Major Altcoins
Several leading altcoins posted significant gains aligned with the broader market optimism:
- Solana (SOL) increased by 10.5%, reaching $199.01.
- XRP was up 7.9%, trading near $3.09.
- Sui (SUI) rose 9.5% to $3.74.
- Cardano (ADA) climbed 9.5% to $0.9334. ### Coinbase Lists World Liberty’s USD1 Stablecoin
In a high-profile listing, Coinbase Global (NASDAQ: COIN) announced it has approved USD1, a stablecoin issued by World Liberty Financial—a crypto project associated with former U.S. President Donald Trump and his family. The announcement came on Thursday, August 21, and was subsequently shared by Eric Trump on social media, hinting at additional forthcoming updates related to the project.
USD1 joins a growing family of stablecoins on Coinbase, including USDT, USDC, PYUSD, and DAI. Launched earlier this year, USD1 is designed for integration into World Liberty’s planned decentralized finance (DeFi) platform, which is being built on Ethereum leveraging Aave protocol technology. While the platform has yet to go live, it aims to offer lending and borrowing services enabling more dynamic DeFi participation.
The stablecoin sector in the U.S. is gaining regulatory momentum following the passage of the GENIUS Act, which establishes national standards for stablecoin issuance and trading. However, World Liberty’s political affiliations remain a topic of debate, especially amid reports linking USD1 to a multibillion-dollar investment in Binance from an Abu Dhabi sovereign fund.
Regulatory and Industry Updates
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U.S. House Moves to Block Fed CBDC Issuance: The House Rules Committee has included provisions within the National Defense Authorization Act for fiscal year 2026 that would prohibit the Federal Reserve from researching, developing, or issuing a central bank digital currency (CBDC). The move follows a narrowly passed Anti-CBDC Surveillance State Act and aims to bolster opposition to a digital dollar.
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CFTC Seeks Public Feedback on Crypto Trading Rules: Acting Chair Caroline D. Pham of the Commodity Futures Trading Commission (CFTC) invited public comments on regulating spot crypto trading. This is part of the agency’s “crypto sprint” to rapidly implement new U.S. crypto regulations, with a focus on leveraged and margined retail trading on registered exchanges. Public comments close October 20. – Ripple and SBI to Launch Stablecoin in Japan: Ripple and financial group SBI Holdings announced plans to introduce Ripple USD (RLUSD), a dollar-backed stablecoin, to the Japanese market in early 2026. The listing will comply with Japan’s evolving stablecoin regulatory framework and aims to bridge traditional finance with decentralized networks.
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European Central Bank Considers Public Blockchains for Digital Euro: The ECB is reportedly exploring major public blockchains such as Ethereum and Solana to underpin the digital euro ahead of a final design decision, reflecting growing urgency after the GENIUS Act reshaped the competitive landscape.
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Binance Directed by AUSTRAC to Appoint External Auditor: Australia’s financial regulator, AUSTRAC, has ordered Binance to appoint an external auditor following concerns over anti-money laundering controls and governance issues. The directive adds to Binance’s global regulatory challenges and scrutiny.
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Disclosure: The author holds no direct investment interest in the companies mentioned above.