← Coin Stories with Natalie Brunell
Coin Stories with Natalie Brunell
News Block: Inflation Cools, Rate-Cut Bets Surge, Strategy Loads Up on Nearly $1B BTC, Senator Lummis Retirement
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Welcome to the Coinsories news block, powered exclusively by LEDN. I'm Natalie Brunel, and in about 10 minutes or less, I'll provide you with insightful updates on bitcoin financial markets and the global economy. Everything you need to know in one block. Let's go. We begin the show with an update on inflation. The latest CPI print came in cooler than expected. According to the Bureau of Labor Statistics delayed report headline, CPI was 2.7% year over year in November, below what economists were looking for. And core CPI, which strips out food and energy, came in at 2.6% year over year, also under expectations. And markets liked it. Stock futures popped and treasury yields dipped right after the release. Now, one big asterisk here is that this CPI report comes with a giant footnote. Because of the federal government shutdown, the BLS canceled the October CPI release and it acknowledged that November's report has, quote, measurement limitations. So economists are basically saying what bitcoiners have said for years, that CPI data can't really be trusted to measure the true rate of inflation. Still, in a market that's been looking for confirmation that inflation pressures are cooling, this was enough to nudge expectations toward more easing from the Fed. And you can see it in the rate cut odds. Right now, markets are pricing in roughly a 1 in 4 chance of another cut at the Fed's January meeting. And for bitcoin, that matters, of course, because easier policy and lower yields tend to support liquidity. But here's where it gets interesting. The Fed is not speaking with one voice anymore. A perfect example of that came from Cleveland Fed President Beth Hammock, who pushed back on the idea of cutting again so soon. She wants to hold rates steady, citing inflation concerns and specifically questioning how much we should rely on this CPI print given the shutdown distortions. So the setup is basically this. Inflation looks cooler, so the market is leaning dovish. But some Fed officials are saying not so fast. Now, speaking of the Fed, it also made headlines this week for something that sounds boring but actually matters a lot for bitcoin banking rules. Back in 2023, the Fed put out restrictive guidance that basically told banks if it's not clearly permitted for national banks, assume the answer is no. And any activity labeled as novel, which is how bitcoin was treated, was basically a red flag. So even if a bank wanted to offer clients services and products like bitcoin custody, bitcoin rewards cards, or bitcoin backed lending, that guidance made it a non starter for most banks. They didn't want to touch it because no bank wants to be the test case that gets smacked by regulators. But this week, the Fed walked things back. The new guidance is more case by case, and it opens the door. And instead of the default being no, banks can now come in, make their case and get clarity. And that's exactly what institutions need to feel confident offering Bitcoin related services without stepping into a regulatory trap. So when the Fed eases a restrictive stance like this, it increases the odds that banks finally feel comfortable offering Bitcoin products and services to clients, which is something Michael Saylor has been hinting at happening in 2026. And we also got something important from the SEC this week. More clarity on custody. The SEC's Division of Trading and Markets put out a statement explaining how broker dealers can custody certain digital assets that are considered securities and how that fits under the customer protection rule. Here's the simple version. The SEC is basically saying, if you meet these standards, we won't object to you treating those crypto securities as being in your possession and control. Now why does that matter for the digital commodity Bitcoin? Well, because one of the biggest roadblocks for traditional finance has been custody uncertainty. Big firms don't like gray areas, especially when they're responsible for safeguarding customer assets. So the more regulators spell out what good custody looks like, the easier it becomes for institutions to participate with confidence. And that's the big takeaway. More clarity leads to more confidence. And when institutions feel confident enough to build the infrastructure, that's what ultimately makes it easier for more capital to move into the digital asset space over time. Zooming out. This broader change in tone from regulators has been building for a while and it's increasingly being reinforced from the top. Just listen to what Treasury Secretary Scott Bessant said to the American Bankers association this past week.
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We will take a close look at regulatory impediments to blockchain stablecoins and new payment systems. And we will consider reforms to unleash the awesome power of the American capital markets. Americans deserve a financial services industry that works for all Americans, including and especially Main Street.
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So when you connect the dots, inflation data has been cooling, the market is sniffing out more cuts, and the rulebook around digital assets is getting clearer. That combination monetary easing plus regulatory clarity is a much more constructive backdrop for Bitcoin than what we were dealing with only a year or two ago ago. Need cash but don't want to sell your Bitcoin? Leden is the global leader in Bitcoin backed loans, issuing over $9 billion in loans since 2018 and they were the first to offer proof of reserves. With Leaden, you get custody loans, no credit checks, no monthly payments and more. Visit Leden IO Natalie to learn more and get a quarter percentage point off your first loan. Okay, so one headline this past week that personally had me a little down was the news that Sen. Senator Cynthia Lummis has decided not to run for reelection. Senator Lummis has been one of Bitcoin's most vocal and influential supporters in Congress for many years now and I'm so grateful I had the chance to interview her on the podcast. I think it's important to note that Senator Lummis didn't just support Bitcoin when it became more accepted for policymakers to do so. No, she fought for Bitcoin when it was unpopular, she fought for Bitcoin when it was being attacked. She was the champion bitcoin needed when we had few allies on Capitol Hill. Her legacy includes the Responsible Financial Innovation act, which among other things aimed to protect the right to self custody. She also penned the Bitcoin Act, a proposal to create a strategic Bitcoin reserve and buy 1 million Bitcoin with the goal of helping to reduce the national debt. I always look to Senator Lummis as a voice of reason in D.C. and there's no doubt that the industry will miss her voice and leadership, which only speaks to her outsized impact impact in pushing bitcoin adoption forward. I can't wait to see what she does in her next chapter. All I can say is thank you for advocating for bitcoin and for your service to this country, Senator Lummis. And when it comes to policy, all eyes are now on the Clarity act, the digital asset market structure bill that could finally put some real rules of the road in place. Crypto and AI Czar David Sachs tweeted that after talking with Senator Tim Scott and John Boozman, they confirmed that a markup for the Clarity act is coming in January. He added that we are closer than ever to passing the landmark crypto market structure legislation. It's great to hear they continue to make progress in Washington. Timing is really everything and there's a real urgency to get this done before the midterms because once the political map changes, the path to passing major legislation can get a lot tougher fast. And thankfully there are now more elected leaders in Congress than ever before who share Senator Lummis views that Bitcoin is an innovative technology that can strengthen America and make a positive, positive impact on the world. Hopefully they can turn all this momentum into a bill on the President's desk. And finally this week, although Bitcoin's recent price action has some investors spooked, the Crypto Fear and Greed Index, for example, is sitting at extreme fear levels. That hasn't stopped Michael Saylor and his team from taking advantage of the bitcoin sale. Last week, Strategy acquired another 10645 Bitcoin for $980 million. Strategy now holds over 675 71,000 Bitcoin and has stacked more than $20 billion worth of Bitcoin in 2025 alone. I had the privilege of visiting Strategy's headquarters last week and got the chance to sit down with Strategy CEO Fong Li, where we discussed Fong's humble beginnings, some recent headlines, and market volatility and the company's vision for 2026 and beyond. I highly recommend everyone give it a listen. Saylor also sent out a tweet hinting at another incoming green dot. Last time, a green dot signaled that Strategy raised capital to add to its US Dollar reserve, which is meant to provide a capital cushion to support dividend payments for the preferreds. I asked Fong all about that reserve. By the way, the fact that Strategy continues to raise capital and accumulate bitcoin in times of market stress and extreme fear proves the resilience of its business model. If they continue to execute and increase their bitcoin holdings across cycles, then it will likely quiet a lot of the critics. Overall, it's really good for Bitcoin to have a price insensitive buyer like Strategy in the market willing to step in regardless of headlines, fear and short term price action. When you have disciplined sizable demand that shows up in down markets, it can help smooth the volatility over time. And to all my listeners, I want to wish you a very happy holiday week. Your support means the world to me and my team is so excited for what's in store in 2026. Make sure to grab your copy of Bitcoin is for everyone. For your friends and family gifts this season, it is the gift that will keep on giving. Thanks for tuning in. That's it for the News block. Your weekly Bitcoin and Economic news update. Powered exclusively by ledn. I'm Natalie Brunel. Make sure you're subscribed to Coin Story so you never miss an episode. This show is for educational purposes and should not be construed as investment advice. Until next time, keep stacking. Sam.