The Federal Reserve is expected to lower interest rates in October, with a 96.7% probability according to CME’s FedWatch data. This potential rate cut could impact cryptocurrency markets by potentially increasing liquidity and investment activity. Historical precedents show increased Bitcoin and Ethereum trading volume following these shifts in financial policy. According to the Federal Reserve Bank’s Payment Innovation Conference, Governor Chris Waller emphasized a commitment to innovation in financial services, impacting fintech and stablecoin issuers. The move comes amidst anticipation of new restricted master accounts that allow all legally compliant entities direct access to the Federal Reserve payment system without partner banks. Analysts believe this policy change could stimulate investment activity across various risk assets, including cryptocurrencies. Initial market reactions are cautiously optimistic, with industry leaders like Nathan McCauley of Anchorage Digital expected to provide further insights. It remains to be seen how these changes will impact stablecoin accessibility to official payment systems. Historical data shows that rate cuts have often led to increased investments in cryptocurrencies like Bitcoin and Ethereum during 2020-2021, signifying the potential for a positive response to this upcoming change in policy.