Crypto Market Update: World Liberty Gains Coinbase Approval with Stablecoin Listing
August 22, 2025, 1:05 PM PST — The cryptocurrency market experienced notable gains on Friday, marked by key developments including the approval and listing of World Liberty Financial’s stablecoin, USD1, on Coinbase. This listing represents a significant step for the Trump-backed crypto project as it aims to expand its footprint within the decentralized finance (DeFi) ecosystem.
Market Rally Fueled by Fed Chair Powell’s Speech
The crypto market rallied enthusiastically following remarks from US Federal Reserve Chair Jerome Powell during the Jackson Hole Symposium. Investors reacted positively to signals suggesting a possible interest rate cut in September, prompting a surge in the value of major cryptocurrencies.
- Bitcoin (BTC) climbed 3.9% within 24 hours, reaching a high of approximately $117,310 USD after opening the day around $112,019 USD.
- Ethereum (ETH) gained over 14% to surpass $4,843, breaking past a multi-week resistance near $4,600 and igniting forecasts of a potential rise toward $6,000.
- Other altcoins such as Solana (SOL), XRP, Sui (SUI), and Cardano (ADA) similarly recorded gains ranging from 7.9% to over 10%, reflecting broad market optimism.
Powell emphasized a "curious balance" in the labor market and indicated a flexible stance on monetary policy, noting that low unemployment alone would not trigger interest rate hikes. The Fed also removed language from its communications that previously suggested tolerance for inflation above 2%. This, combined with a revised outlook, propelled hopes for an easing in monetary policy.
Coinbase Lists USD1 Stablecoin from World Liberty Financial
Amid this bullish climate, Coinbase Global (NASDAQ: COIN) officially announced the listing of USD1, a stablecoin developed by World Liberty Financial—a crypto project with close ties to former US President Donald Trump and his sons. The announcement arrived on August 21, with Eric Trump actively sharing the news on social media platform X, hinting at further developments soon.
USD1 was initially launched earlier this year and is designed as an Ethereum-based stablecoin that integrates Aave technology, a prominent DeFi lending protocol. Although the World Liberty platform supporting lending and borrowing services is not yet live, the Coinbase listing significantly boosts the stablecoin’s visibility and credibility.
Alongside USD1, Coinbase’s stablecoin offerings for US users now encompass major tokens such as USDT, USDC, PYUSD, and DAI, diversifying users’ options. The move comes at a time when the US stablecoin sector is gaining regulatory momentum, especially following the passage of the GENIUS Act, which establishes national standards for stablecoin issuance and trading.
However, World Liberty’s political connections remain a point of controversy. Reports have linked USD1 to a multibillion-dollar investment in Binance from an Abu Dhabi sovereign wealth fund, raising questions within the crypto community regarding the project’s long-term trajectory.
Regulatory and Industry Updates
US House’s Move Against Federal Reserve CBDC
In a closely watched legislative development, the US House of Representatives has incorporated a measure into the 2026 National Defense Authorization Act (HR 3838) that would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC). This provision aims to restrict Fed research, development, or issuance of a digital dollar and was strategically added to enhance its chances of passage. The House had previously passed the Anti-CBDC Surveillance State Act with a narrow margin, but the Senate’s position remains uncertain.
CFTC Seeks Public Input on Spot Crypto Trading Rules
The Commodity Futures Trading Commission (CFTC), led by acting Chair Caroline D. Pham, announced a call for public commentary to assist the agency in shaping regulations around spot crypto trading. The feedback is requested ahead of implementing the President’s directive on crypto regulation, with comments accepted until October 20. This initiative is part of the CFTC’s broader “crypto sprint” to establish a regulatory framework for digital assets.
Ripple and SBI to Launch Stablecoin in Japan
Ripple and SBI Holdings revealed plans to introduce Ripple USD (RLUSD) in Japan by early 2026. This dollar-backed stablecoin will be managed under Japan’s new regulatory framework by SBI VCTrade, a licensed payments provider. RLUSD boasts institutional-grade standards with monthly third-party attestations, aiming to bridge traditional finance and decentralized networks following Japan’s recent approval of its first yen-based stablecoin.
European Central Bank Considers Public Blockchains for Digital Euro
The European Central Bank (ECB) is accelerating efforts toward its digital euro project and reportedly evaluating major public blockchain networks such as Ethereum and Solana. Although private blockchain solutions were initially favored, public blockchain options are gaining consideration as the ECB explores both centralized and decentralized ledger technologies.
AUSTRAC Orders Binance to Appoint External Auditor
In Australia, regulatory scrutiny on Binance intensifies as the financial watchdog AUSTRAC directed the exchange to appoint an independent external auditor. The order follows concerns about Binance’s insufficient anti-money laundering controls and high management turnover within its Australian operations. This regulatory pressure compounds challenges Binance continues to face globally, including a record $4.3 billion fine in the US and ongoing legal cases in Nigeria.
Conclusion
Friday’s crypto market movements underscored the sector’s responsiveness to macroeconomic signals and regulatory developments. The Coinbase listing of World Liberty Financial’s USD1 stablecoin marks a pivotal moment in stablecoin adoption, particularly given its high-profile political associations and ambitions in DeFi.
Investors and observers will be closely watching the unfolding regulatory dialogue in the US and internationally, alongside technological advancements and institutional adoption trends shaping the future of digital assets.
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Disclosure: The author, Giann Liguid, holds no direct investment interest in any companies mentioned in this article.