Garlinghouse: Pro-Crypto Policy Helped Soften CPI as Bitcoin Soars Past $97K

Ripple CEO Brad Garlinghouse weighed in on Thursday’s CPI print, suggesting U.S. inflation’s recent softness could partly reflect pro-crypto policy shifts — a view that added fuel to an already bullish market reaction. The Bureau of Labor Statistics reported headline CPI at 2.7% year-over-year and core CPI at 2.6% YoY, slightly under expectations for the core figure. In an X post, Garlinghouse pointed out a 3.5% drop in the financial services component of the CPI and raised the possibility that the Trump administration’s pro-crypto regulatory stance has helped make certain financial services more accessible and less costly for consumers. Traders cheered the data. Bitcoin briefly climbed past $92,000 and then pushed to a new yearly high above $97,000, while major altcoins — including Ethereum, Ripple-linked XRP, Solana and Dogecoin — posted notable gains. The subdued inflation read is widely seen as supportive for risk assets because it increases the chance the Federal Reserve can cut rates sooner or more often if inflation remains steady. That shift showed up in prediction markets: Polymarket’s odds moved toward more rate cuts, with roughly a 27% probability of three cuts this year and a 21% chance of two — up from earlier expectations that had centered on just two cuts. Adding to the dovish narrative, the Trump administration is expected to nominate a Fed chair who favors rate reductions, a development markets would view as another tailwind for risk assets. Garlinghouse also praised the CLARITY Act’s upcoming markup — before the session was postponed — calling the review “long overdue” and “a massive step forward” toward workable regulatory frameworks that protect consumers. “Clarity beats chaos,” he wrote, framing the bill’s success as tied to the broader industry’s fortunes and expressing optimism that issues could be resolved through the markup process. The Senate Banking Committee postponed the markup after Coinbase withdrew support over concerns about DeFi and stablecoin yield provisions. Garlinghouse has not publicly commented on the postponement; Coinbase CEO Brian Armstrong said the legislative effort hasn’t stalled despite the setback. Taken together, the CPI print, market reaction and regulatory developments underscore two themes for crypto markets right now: macro conditions that may make looser monetary policy more likely, and an ongoing push for clearer rules that could reshape industry costs and access. Read more AI-generated news on: undefined/news