Inflation Relief Boosts Bitcoin, SEC Approves Galaxy Listing, and Tether Eyes US-Compliant Stablecoin

TL;DR

Bitcoin jumps 4% as softer U.S. PPI data boosts investor optimism and revives hopes for Fed rate cuts.
Trump pauses tariffs for some countries but raises China’s rate to 125%, intensifying volatility across equities and crypto.
Paul Atkins confirmed as SEC Chair, signaling a shift toward clearer crypto regulation.
Tether may launch a U.S.-compliant stablecoin if USDT faces restrictions under new legislation.
SEC approves Galaxy Digital’s redomiciling, paving the way for its long-awaited Nasdaq listing in May.

Bitcoin Climbs 4% as Cooling PPI Sparks Inflation Optimism, but Risks Linger

Bitcoin rallied 4% on Friday, rising to $82,500 after U.S. Producer Price Index (PPI) data showed signs of easing inflation. According to the Bureau of Labor Statistics, March’s PPI fell 0.4% month-over-month, while core PPI declined 0.1% — both significantly below expectations. On a year-over-year basis, PPI and core PPI came in at 2.7% and 3.3%, respectively, undercutting forecasts and reinforcing the softer Consumer Price Index reading from earlier in the week.

The broader crypto market followed suit, with major altcoins such as ether, solana, and cardano each rising over 4%, according to the GMCI 30 Index. Analysts say the data boosts hopes for a Federal Reserve rate cut, but warn that markets remain vulnerable to shifting macro conditions. “Softer inflation gives the bulls a green light for now, but sustaining this move will require a stable policy backdrop and no inflation shocks from tariffs or geopolitics,” said Dr. Kirill Kretov, senior automation expert at CoinPanel.

Despite the rally, several headwinds persist. U.S. Treasury yields climbed to 4.5%, adding pressure to bonds and equities alike, while fresh U.S.-China tariff escalations further complicate the outlook. Market watchers are now looking ahead to the Personal Consumption Expenditures (PCE) Price Index on April 30 — the Fed’s preferred inflation gauge — for clearer signals on monetary policy. “We are in a politically charged period with frequent headlines that can shift sentiment fast,” Kretov added. “Tariff escalation would complicate the Fed’s path, potentially delaying cuts.”

Trump Pauses Some Tariffs, Raises China’s to 125%, Triggering Market Whiplash

U.S. President Donald Trump announced a 90-day pause on reciprocal tariffs for certain countries while simultaneously increasing tariffs on Chinese imports to 125%. The announcement, made via a Truth Social post on April 9, signaled a mixed but aggressive stance on trade policy. “At some point, hopefully, in the near future, China will realize that the days of ripping off the USA... is no longer sustainable or acceptable,” Trump stated.

Markets responded with sharp volatility. The S&P 500 surged nearly 7% following news of the pause, reversing steep losses incurred earlier in the week when fears of a prolonged trade war spooked investors. The volatility index (VIX) spiked above 60 on April 7 — the highest level since August 2024 — before falling back to 37.5, still indicating extreme uncertainty across capital markets. The pattern of sharp swings has persisted with each policy statement or rumor regarding tariff escalation or relief.

BitMEX founder and macro analyst Arthur Hayes suggested that further escalation could provoke a devaluation of the Chinese yuan — a move that, historically, has triggered capital flight into crypto. He pointed to similar periods in 2013 and 2015 when Chinese investors turned to digital assets amid currency pressure. While the near-term relief sparked a rally, analysts caution that the trade policy landscape remains unstable and headline-driven, with crypto markets likely to remain sensitive to global capital flows.

Paul Atkins Confirmed as SEC Chair, Industry Looks Ahead to Regulatory Clarity

The U.S. Senate has confirmed Paul Atkins as the next chair of the Securities and Exchange Commission, marking a pivotal moment for the crypto industry. Atkins, a former SEC commissioner and longtime advocate for capital markets reform, replaces acting chair Mark Uyeda. His confirmation comes at a time of growing pressure for the agency to provide clearer, more constructive guidance on digital assets.

Atkins was confirmed by a 52–44 Senate vote following a March 27 hearing where he emphasized the need for a “rational, coherent and principled approach” to regulating digital assets. He criticized the current framework as “ambiguous and non-existent,” arguing it stifles innovation and discourages global capital from investing in the U.S. financial system. Atkins’ appointment aligns with the broader shift under the Trump administration, which has already seen the SEC unwind several enforcement actions against crypto firms.

Tether CEO Suggests U.S.-Compliant Stablecoin May Be Launched if USDT Is Banned

Tether, the issuer of the world’s largest stablecoin, may develop a new U.S.-compliant stablecoin if upcoming regulation forces USDT out of the American market, according to CEO Paolo Ardoino. Speaking to Decrypt on Friday, Ardoino downplayed concerns over USDT’s future in the U.S., stating that the company is prepared to pivot by launching a separate product tailored for the domestic market.

“We believe that our main stablecoin is perfected for emerging markets, but we can craft a payment stablecoin that works for the U.S.,” Ardoino said. The proposed new asset would be issued under a U.S. regulatory framework and designed to comply with anti-money laundering rules and transparency requirements that are gaining bipartisan traction in Washington. While USDT remains dominant globally, Ardoino acknowledged the need for separate value propositions across different regulatory environments.

Legislation such as the STABLE Act in the House and the GENIUS Act in the Senate would require foreign stablecoin issuers—including Tether, which is headquartered in El Salvador—to undergo rigorous reserve audits and comply with the Bank Secrecy Act. Tether, which manages over $144 billion in USDT circulation, has long faced scrutiny for its lack of a full financial audit. While critics question its reserve transparency, Tether maintains that its backing is robust and well-managed. The company’s willingness to introduce a new U.S. product reflects a broader trend toward regulatory adaptation among global stablecoin issuers.

SEC Approves Galaxy Digital Reorganization Ahead of Potential Nasdaq Listing

Galaxy Digital has cleared a major regulatory hurdle in its long-awaited path to a Nasdaq listing. The U.S. Securities and Exchange Commission approved the firm’s plan to redomicile from the Cayman Islands to Delaware, setting the stage for a shareholder vote on May 9 that could finalize its U.S. listing under the ticker symbol "GLXY." Galaxy CEO Mike Novogratz confirmed the timeline on X, stating, “We’re on track to list on Nasdaq shortly after our shareholder vote... Let’s go!”

Galaxy first announced plans to list on Nasdaq in early 2022. The SEC’s approval of the company’s registration change is one of the final steps before listing. The restructuring involves consolidating Galaxy’s corporate entity under a new Delaware-based company — a move designed to streamline legal and administrative operations and remove restrictions on U.S. shareholder voting rights. Upon completion, Novogratz will retain nearly 60% of voting control.

Currently listed on the Toronto Stock Exchange, Galaxy will maintain a dual listing for a transitional period after the reorganization. The firm expects the conversion of its Class A ordinary shares into Class A common stock to occur on a one-to-one basis, without redemption or cancellation. With Nasdaq listing requirements nearly fulfilled, Galaxy aims to complete the transition by mid-May, pending shareholder approval. The move positions the firm for expanded U.S. investor access as it continues to scale its crypto and AI infrastructure business.