“Fed officials were focused less on rate moves and more on whether the financial system has enough cash to avoid sudden disruptions.”, — write: www.coindesk.com
Released on Dec. 30, the minutes from the Dec. 9–10 Federal Open Market Committee meeting suggested policymakers were broadly comfortable with the economic backdrop. Investors, the minutes note, largely expected a quarter-point rate cut at that meeting and anticipated additional reductions in 2026, and rate expectations changed little over the intermeeting period.
But the discussion extended well beyond the policy rate. The minutes repeatedly highlight signs that short-term funding markets — where banks and financial firms borrow and lend cash overnight to facilitate daily transactions — were becoming tighter.
At the center of that concern is the level of cash, known as reserves, in the banking system. The minutes say reserves had fallen to what the Fed considers “ample” levels. While that sounds reassuring, officials described this zone as one where conditions can become more sensitive: small swings in demand can push overnight borrowing costs higher and strain liquidity.
Several warning signs were flagged. The minutes cite elevated and volatile overnight repo rates, rising gaps between market rates and the Fed’s administered rates and increased reliance on the Fed’s standing repo operations.
Several participants noted that some of these pressures appeared to be building more rapidly than during the Fed’s 2017–19 balance-sheet runoff, a comparison that highlights how quickly funding conditions can deteriorate.
Seasonal factors added to the concern. Staff projections indicated that end-of-year pressures, late-January shifts, and especially a large springtime influx tied to tax payments flowing into the Treasury’s account at the Fed could sharply drain reserves. Without action, the minutes suggest, reserves could fall below comfortable levels, thereby increasing the risk of disruption in overnight markets.
To address that risk, participants discussed initiating purchases of short-term Treasury securities to maintain ample reserves over time. The minutes emphasize these purchases are intended to support interest-rate control and smooth market functioning, not to change the stance of monetary policy. Survey respondents cited in the minutes expected purchases to total about $220 billion over the first year.
The minutes also show officials seeking to enhance the effectiveness of the Fed’s standing repo facility — a backstop designed to provide liquidity during periods of stress. Participants discussed removing the tool’s overall usage cap and clarifying communications so market participants view it as a normal part of the Fed’s operating framework rather than a last-resort signal.
Markets are now focused on the next policy decision. The federal funds target range currently stands at 3.50% to 3.75%, and the next FOMC meeting is scheduled for Jan. 27–28, 2026. As of Jan. 1, CME Group’s FedWatch tool showed traders assigning an 85.1% probability to the Fed holding rates steady, versus a 14.9% chance of a quarter-point cut to a 3.25%–3.50% range.
KuCoin captured a record share of centralized exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the broader crypto market.
- KuCoin recorded over $1.25 trillion in total trading volume in 2025equivalent to an average of roughly $114 billion per monthmarking its strongest year on record.
- This performance translated into an all-time high share of centralized exchange volumeas KuCoin’s activity expanded faster than aggregate CEX volumeswhich slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly spliteach exceeding $500 billion for the year, signaling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activityreinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activityindicating structurally higher user engagement rather than short-lived volume spikes.
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The South Korean regulator slapped Korbit with a compliance penalty as the crypto exchange conducts talks to be bought by Mirae Asset.
- Korbit, a South Korean crypto exchange, was fined $1.9 million for anti-money laundering and customer verification breaches.
- The Financial Intelligence Unit said it found thousands of violations during an inspection in October 2024.
- Mirae Asset is in talks to acquire a majority stake in Korbit for up to $98 million.
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