Bankless Rollup: The Fed Lowered Interest Rates—What That Means for Crypto

Date: September 19, 2025
Hosts: Ryan Sean Adams & David Hoffman
Main Theme: An expert breakdown of the Fed's recent rate cuts, their impact on crypto markets, regulatory news, global crypto trends, the explosion of ETFs, the possibility of a Base token, and how crypto is driving worldwide economic freedom.

Episode Overview

This episode dives deep into the significance of the Fed’s recent rate cut—the first in nearly a year—and unpacks what this means for crypto markets. The hosts also explore a key Arthur Hayes macro thesis: has the Fed adopted a “third mandate” of yield curve control? In addition, there’s big news about ETF approval processes, stablecoin innovations, the potential for a Base network token, and a global tour of how crypto is challenging traditional finance—from Canada and the UK to Nepal and West Africa. The discussion is lively, opinionated, and packed with both market insights and broader implications for the role of crypto in a changing world.

Key Discussion Points & Insights

1. Crypto Market Pulse & The Fed's Rate Cut

[03:48–10:14]

• Bullish Market Movements:
  • Bitcoin at $117,600, ETH at $4,620—both up for the week.
  • New all-time high in total crypto market cap at $4.213 trillion.
• Fed Cuts Rates:
  • First cut (25bps) since Dec 2024, aligning with market expectations.
  • Markets responded positively ("stonks are green").
  • Polymarket predicts two more 25bps cuts in October and December, totaling a projected 75bps for the year.
• Host Reactions:
  • David: “Bitcoin has been going up for over almost three years now ... the longest, most mellow price increase that we've ever seen in bitcoin, which I think is great. I think that's fantastic. I think that's very healthy. I think that's very mature. Vol is down, price is up.” [06:12]
  • Ryan: Attributes lower volatility to institutional capital from ETFs, which is more disciplined than retail, causing less booms and busts.
  • David: Not much overleveraging in the system; "Credit usage in the market is modest... There's just not a lot of leverage in the system right now." [08:06]

2. End of the Four-Year Crypto Cycle?

[04:36–07:08]

• David’s Take:
  • "I think we can start to wave goodbye to it." [06:54]
  • The cycle is becoming more extended and less volatile due to resumed institutional involvement and disciplined ETF inflows.
• Ryan’s Perspective:
  • Still sees room for boom/bust cycles but expects them to be less violent.
  • “I just think this one might be more like a five year cycle.” [04:39]

3. Fed’s “Third Mandate” – Arthur Hayes Macro Take

[11:11–16:09]

• Arthur Hayes’ Thesis:
  • The Fed is hinting at a new, “third mandate”—yield curve control, alongside the usual inflation and employment targets.
  • Yield curve control means the Fed would actively work to keep long-term interest rates low, even if that means currency debasement.
• Quote:
  • Ryan: “With Fed board member Mirin now confirmed, the Main street media is preparing the world for the Fed's third mandate, which is essentially yield curve control. LFG, Bitcoin to a million.” [11:07]
  • David: “A third mandate I think is overly chaotic ... One of these things just gets ejected. And that's gotta be inflation.” [15:11]

4. Solana DATs (Decentralized Autonomous Trusts) Surge

[16:24–18:51]

• Big Solana Purchases:
  • Multicoin and Pantera Capital launched massive Solana DATs—significant financialization, increased capital, and new dynamics in the space.
  • “They bought 7 million Solana … this thing has just rocketed in size.” [17:06]
  • Pantera’s Helios DAT and Galaxy involvement highlight new power players assembling on Team Solana.

5. ETF Generic Listing Standards: The Coming Crypto ETF Flood

[22:23–26:45]

• Regulatory Breakthrough:
  • The SEC now allows generic listing standards for crypto commodity ETFs, vastly lowering the barrier for new asset-based ETFs.
  • "There's going to be a cannon of spaghetti and it's going to shoot all the spaghetti at the wall, and some things are gonna drop... but some things are gonna stick." —David, on a potential ETF “spaghetti cannon” [26:17]
• Implications:
  • Bitcoin and ETH ETFs paved the way; now, assets like Dogecoin, Litecoin, Chainlink, and blended indices could soon see ETFs.
  • Faster, clearer, and more permissionless creation process compared to the historic bureaucracy.

6. Base Token: Coinbase’s L2 Considers Governance Coin

[27:11–34:44]

• Announcement:
  • Jesse Pollock (Base lead) announced public “exploration” of a network token at Basecamp in Detroit.
  • Jesse Pollock quote: “We do it in the open. We don't have all the answers … but we’re going to figure it out together because we think this could be a really, really powerful tool for building the global economy that all of us believe in.” [28:45]
• Epic Numbers:
  • If valued at peer comps, a Base token could be worth $65–70B, rivaling Dogecoin/Solana and even parent company Coinbase. [32:00]
  • Big open questions: How would token value/revenue be shared with COIN shareholders? Regulatory and “token premium” dynamics.
• Other Base Announcements:
  • Bridge between Base and Solana.
  • Progress on the Base app (1M+ waitlist).
  • Google adopts Coinbase-developed X402 for agent-to-agent payments using crypto.

7. Google, AI, and Crypto-Powered Microtransactions

[35:09–38:10]

• Google Adopts X402:
  • X402 allows Google AI agents to pay for data/services in crypto, enabling seamless microtransactions and better business models for creators.
  • David: “If the website is like, oh, in order to read this article you need to pay me 5 cents on USDC, payable on base ... that can just happen in the background.” [38:10]

8. Stablecoins: Tether’s “Made in America” USAT & Hyperliquid’s USDH

[45:14–49:08]

• Tether Launches USAT:
  • Separate Genius Act-compliant stablecoin for US customers.
  • Notable leadership: Bo Hines, ex-White House crypto advisor, now CEO.
  • USDT remains off-shore and not Genius-compliant.
• Bank/Crypto Lobbying War:
  • Banks lobbying aggressively to amend the Genius bill and prevent stablecoin holders from earning yield.
  • Ryan: “The banks are taking 4% of your money and crypto actually wants to give you that 4%, whose side are you on?” [50:16]

9. Crypto vs. Banks: The New Front in Canada and the UK

[50:16–53:07]

• Canada:
  • Coinbase offers Canadians 4.1% on USDC holdings—directly competitive with banks' 0% chequing accounts.
  • Prediction: "that is going to drain the checking accounts of Canadian banks...retail is going to flock to this service." [51:57]
• UK:
  • Bank of England proposes caps on individual stablecoin holdings—light capital controls—due to systemic threat to banks.
  • “Surveillance and capital controls go hand in hand.” —David [53:05]

10. Stablecoins, Global South & “Freedom Tech”

[53:07–58:22]

• Ghana:
  • Kofi (Base employee): “Stablecoins are better than banks in West Africa ... USDC is the only money that moves when everything else is blocked.” [57:25]
• Nepal:
  • Recent youth revolution used crypto, VPNs, and Discord to sidestep authoritarian controls.
  • Protester: “We can't rely on banks. They serve politicians, not the people.” [56:32]
• Macro Trend:
  • Crypto adoption surges in places with unstable currencies, capital controls, and banking repression.
  • David: “It’s disruptive towards the governments, but also during a revolution, people, individuals still have access to money.” [57:47]

11. Regulatory Turning Point: SEC Chair Paul Atkins’ “Bullish” Speech

[58:22–60:39]

• Paul Atkins in Paris:
  • “Crypto's time has come ... We will provide clear, predictable rules of the road ... President Trump has tasked me with making America the crypto capital of the world ... We're going to tokenize all of our securities.” [Sourced from 59:51]
• David:
  • “Oh, wait, no, we have five more years of him. Because he lasts for six years, right?” [59:58]
• Ryan:
  • “The SEC is the juggernaut ... what the US does and what the SEC says will propagate to the rest of the world.” [60:04]

Notable Quotes & Memorable Moments

• “Bitcoin has never gone up for three years in a row from trough to peak without a blow off top. So this is the longest, most mellow price increase that we've ever seen in bitcoin, which I think is great.”
  —David [06:12]

• “Yield curve control...that's currency debasement. Effectively, that's where we do the bank of Japan thing, where we try to control the interest rates and we, you know, adjust the money supply accordingly.”
  —Ryan [14:41]

• “A third mandate… makes it fundamentally at odds with being able to balance, harmonize… one of these things just gets ejected … that's gotta be inflation.”
  —David [15:11]

• “We're going to be exploring a network token for base ... early and I'm a little nervous ... What's the base way to do this? We do it in the open.”
  —Jesse Pollock [28:45]

• “If you say that you are beginning to explore a network token, you have already explored a network token. Your lawyers have already given you the thumbs up that you can say this.”
  —David [27:11]

• “If Google has adopted X402, which is powering an architecture for the future of agent-to-agent payments via crypto ... I think that's going to be massive!”
  —Ryan [37:13]

• “USAT is the ticker. It's a pretty Chad ticker ... USDT is not Genius compliant. It's not compliant with the recent Genius act for stablecoins, USAT is.”
  —David [45:14]

• “The banks are taking 4% of your money and crypto actually wants to give you that 4%, whose side are you on?”
  —Ryan [50:16]

• “This is a revolutionary story: Discord votes, VPNs, stablecoins—the only way to move money under authoritarian crackdown.”
  —Ryan, on Nepal [56:08]

Important Timestamps

• 00:14 — Introduction; rate cut/bullishness for crypto
• 03:48–10:14 — Market recap and rate cut analysis
• 11:11–16:09 — Arthur Hayes on the Fed’s “third mandate” and implications for crypto
• 22:23–26:45 — SEC ETF rules overhaul
• 27:11–34:44 — Base token: discussion and Jesse Pollock clip
• 35:09–38:10 — Google X402 standard and AI/crypto future
• 45:14–49:08 — Tether’s USAT & USDC lobbying battle
• 50:16–53:07 — Capital controls in Canada, UK, and stablecoin implications
• 53:07–58:22 — Crypto as “freedom tech” in Ghana and Nepal
• 58:22–60:39 — Paul Atkins’ (SEC) bullish crypto speech

Episode Tone

Casual, energized, deeply analytical, and imbued with a sense of optimism about crypto adoption and regulatory progress—while remaining vigilant about risks and global pushback from the banking sector.

For Further Listening

This episode is ideal for investors, regulators, crypto builders, and anyone tracking how macroeconomic policy, regulation, and grassroots technology are converging to reshape global finance.