The Federal Reserve held its benchmark rate at 3.50%–3.75% for a fifth straight meeting, but an unusually large split within the policy committee added a hawkish edge to the decision. Federal Reserve Bank presidents Beth Hammack, Neel Kashkari and Lorie Logan each voted for a 25-basis-point increase, according to the Federal Open Market Committee’s decision record.
Three dissents in favor of the same policy direction had not appeared in an FOMC decision since September 2016. The vote leaves borrowing costs unchanged, yet signals that a meaningful bloc of regional Fed leaders sees enough inflation or financial-stability risk to favor tighter policy.
For cryptocurrency markets, the immediate backdrop remains one of relatively restrictive dollar liquidity rather than a clear return to easing. Stablecoin issuers, whose reserve income is closely tied to short-term U.S. rates, continue to benefit from elevated yields, while leveraged trading strategies face higher financing costs.
South Korea moves to curb leveraged equity trading
South Korea’s Finance Ministry said it would introduce measures aimed at stabilizing domestic equities, including restrictions on retail exposure to leveraged exchange-traded funds. The ministry also plans to maintain a 24-hour monitoring system for the local stock market.
The action follows turbulence involving leveraged equity products, which amplify a market’s daily move and can force rapid buying or selling when volatility rises. Bloomberg ETF analyst Eric Balchunas said a National Assembly hearing included sharp criticism of 2x leveraged ETFs, citing lawmaker Lee Jongwook’s argument that such products should not have received approval.
JPMorgan said the unwind in South Korean leveraged equity ETFs has been completed and that hedge funds have finished roughly 90% of their deleveraging, according to the market update cited in the materials. If that assessment proves accurate, a major source of forced selling may be receding even as Seoul tightens retail trading rules.
South Korean policymakers are also considering changes to cryptocurrency taxation. The National Assembly’s Strategy and Finance Committee was scheduled to review an opposition-backed amendment that would eliminate a planned tax on digital-asset income before its expected Jan. 1, 2027 start date. Under the existing proposal, annual income from crypto transfers or lending above 2.5 million won would face a 20% tax plus a 2% local income tax.
Separately, South Korea’s Financial Services Commission said it plans to work with the ruling Democratic Party on a unified Digital Asset Basic Act. The proposed framework would cover stablecoin issuance and circulation, licensing and entry standards, disclosures, internal controls, and system-resilience requirements.
Corporate earnings show diverging spending priorities
Technology earnings delivered mixed messages on growth and spending. Samsung Electronics reported second-quarter net profit of 71.3 trillion won, ahead of a 68.5 trillion won market estimate cited in the materials. Its semiconductor division recorded 89.2 trillion won in operating profit, while group operating profit reached 89.4 trillion won on 171 trillion won of revenue.
Microsoft also exceeded expectations in its fiscal fourth quarter. The company reported revenue of $90 billion, up 18% from a year earlier and above the $87.6 billion estimate cited in the materials. Earnings per share reached $4.81, compared with an expected $4.24 and $3.65 a year earlier.
Microsoft said Azure generated $39.3 billion in quarterly revenue, rising 43%, while annual Azure revenue exceeded $100 billion. Shares rose as much as 4% in after-hours trading following the release, though the stock was still down about 18% year to date, according to the supplied market data.
Meta reported second-quarter revenue of $60.8 billion, up 28%, but its shares fell more than 6% after hours after it lifted the bottom of its annual capital-expenditure range to $130 billion from $125 billion. The upper end remained $145 billion. Meta reported net profit of $15.8 billion, below analyst expectations, and free cash flow of $784 million.
The contrasting market reactions point to a growing divide in how traders are assessing artificial-intelligence spending. Microsoft’s cloud growth gave the market a clearer revenue payoff from infrastructure investment, while Meta’s higher spending guidance intensified questions over the timing and scale of returns.
Robinhood expands crypto and international operations
Robinhood reported second-quarter net revenue of $1.31 billion, up 32% year over year and slightly above the $1.28 billion estimate cited in the materials. Net profit rose 48% to $573 million, while diluted earnings per share reached $0.62.
Crypto revenue totaled $100 million, above an $86.6 million expectation, while options revenue rose 29% to $342 million. The company said net deposits reached a record $21.7 billion, Gold subscribers rose 39% to 4.8 million, and average revenue per user increased 24% to $187.
Robinhood also said its Chain mainnet went live, it obtained a capital-markets services license in Singapore, and it completed its acquisition of Canadian platform WonderFi. The company guided for 2026 adjusted operating expenses and stock-based compensation of $2.675 billion to $2.775 billion.
The results show trading platforms continuing to diversify beyond transaction fees through subscriptions, international licensing, blockchain products, and acquisitions. Crypto remains a meaningful but smaller revenue line than options for Robinhood, making its contribution especially relevant during periods of volatile digital-asset markets.
Stablecoin forecasts reset as Circle faces lower supply expectations
Bernstein lowered its Circle price target to $140 from $190, while noting that Circle shares closed at $64.32 on July 28. The firm reduced its estimate for USDC supply at the end of 2026 by 37% to $83 billion and cut its 2028 estimate to $170 billion.
USDC ended the second quarter with approximately $73 billion in circulation, down from $77 billion at the end of the first quarter, according to Bernstein’s figures. Average quarterly supply stood near $76 billion. With average SOFR at 3.62%, Circle’s reserve yield declined to 3.46%, though reserve revenue increased to about $655 million.
Bernstein also reduced its 2026 adjusted EBITDA forecast for Circle by 12% to $602 million and lowered its earnings-per-share estimate to $0.92 from $1.98. The revisions reflect the sensitivity of stablecoin economics to both interest rates and the amount of tokens in circulation.
The firm highlighted rising USDC balances on Hyperliquid, which it said increased from $5 billion in mid-May to more than $6 billion. Bernstein estimated those balances could generate about $210 million in annualized gross reserve revenue, with roughly $190 million directed through a revenue-sharing agreement.
Circle received final approval from the Office of the Comptroller of the Currency in July to establish Circle National Trust, Bernstein said. The firm nevertheless projected that total stablecoin supply could reach $4 trillion by 2035, with Circle holding about a 30% share.
Tokenized equities and crypto funding add to market activity
Dune data showed bStocks holding about $599 million in assets under management, narrowly ahead of xStocks at roughly $589 million. The figures placed bStocks as the largest on-chain stock-asset product in the cited dataset, underscoring the growing competition to offer blockchain-based exposure to listed equities.
Grvt scheduled its token generation event for July 30, with an airdrop allocation of 280 million GRVT. The first season pool totals 100 million tokens and the second totals 180 million, with distributions set to be released in batches over 12 months. The claim window opens at 21:00 on July 30, while registration closes Aug. 6 at 08:00.
Crypto financing and mergers totaled $12.86 billion across 271 completed deals in the second quarter of 2026, according to the deal data provided. Venture financing accounted for $4.99 billion across 218 rounds, while debt financing reached $4.36 billion across nine deals. IREN represented $3.65 billion of that debt total.
Mergers and acquisitions contributed $3.33 billion across 40 deals, and the 10 largest transactions represented 67% of disclosed funding. The concentration suggests that headline quarterly funding growth depended heavily on a small group of large financings rather than evenly distributed venture activity.
CME said it is working with index provider FutureSports on cash-settled futures and options tied to professional and college sports events, subject to regulatory approval. The proposed products could begin trading as early as this summer, placing regulated derivatives markets closer to the politically contested prediction-contract sector.
That debate is already reaching Washington. Attorneys general from 44 U.S. states sent a letter opposing CFTC oversight of sports-event contracts on prediction platforms, while Senators Ruben Gallego and Thom Tillis were reported to be finalizing a bipartisan ethics counterproposal connected to the CLARITY bill.
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