Core Viewpoint - The Federal Reserve's proposal to relax capital requirements for large banks is expected to impact the pricing logic of USD Coin funding rates in the cryptocurrency market, indicating a shift in market dynamics and liquidity [1][3]. Group 1: Federal Reserve Policy Changes - The Federal Reserve has submitted a proposal to reduce the overall capital increase requirement for large banks from 9% to a range of 3%–7%, which may lead to a decrease in capital for banks with large trading portfolios [1]. - This policy easing is aimed at relieving capital pressure on financial institutions, thereby releasing market liquidity [3]. Group 2: Impact on USD Coin Funding Rates - The USD Coin funding rate, a key indicator connecting the cryptocurrency market with traditional financial rates, is influenced by premium indices and interest rate components, significantly affected by USD financing costs [3]. - Historical data shows that a previous proposal for a 19% capital increase led to a rise in USD financing costs, maintaining a positive premium for USD Coin funding rates above 0.012% for three consecutive weeks [3]. - The new expectation of a 3%–7% capital increase has narrowed the anticipated interest rate differential between the cryptocurrency and traditional financial markets, suppressing the upward potential of funding rates [3]. Group 3: Market Reactions and Trading Platforms - Following the announcement of the policy signal, the USD Coin funding rate on major platforms has slightly decreased from the usual 0.01% per 8 hours, with a noticeable increase in arbitrage capital involvement, indicating market anticipation of rate fluctuations [3][5]. - XBIT, a decentralized trading platform, has demonstrated strong adaptability to market volatility due to its advanced risk control systems, which have kept user liquidation rates significantly below the industry average during recent market fluctuations [4]. Group 4: Investment Strategies and Opportunities - The expected volatility in USD Coin funding rates due to the Federal Reserve's policy easing creates diverse trading opportunities for investors, with risk control and tool adaptability being crucial factors [7]. - Short-term strategies such as rate arbitrage are considered low-risk, where investors can hold USDC while opening equivalent perpetual contract short positions to hedge against market fluctuations [7]. - Long-term strategies should align with the Federal Reserve's policy implementation timeline, with analysts suggesting that if the final capital increase is between 3%–5%, the long-term funding rate may stabilize around 0.008%–0.01% [8].