Feds Cut Rates, Crypto.com CEO Sees Bull Run and Basis Trade Revival

Crypto.com CEO Kris Marszalek has expressed confidence in a strong fourth-quarter for the crypto market, fueled by expectations of a Federal Reserve rate cut in September 2025. In an interview with Bloomberg, Marszalek stated that a rate reduction would boost liquidity and encourage investors to allocate capital to riskier assets, including cryptocurrencies. The CEO specifically highlighted that borrowing costs would decline, creating favorable conditions for digital assets. He pointed to the Fed’s previous rate cuts in late 2024, which saw crypto markets rise 57% over four months, as a potential precedent for this year’s market movement [2].

The likelihood of a rate cut has increased significantly, with CME futures prediction markets showing a 91.7% probability of a 25-basis-point reduction following Fed Chair Jerome Powell’s speech at Jackson Hole on August 22. Marszalek reiterated that a rate cut at the September 17 meeting would likely spark a surge in risk appetite, which historically supports crypto demand [2]. A reduction in interest rates could also revive the basis trade, a strategy that profits from the difference between spot and futures prices, which has remained subdued in 2025 due to high funding costs and low volatility [3].

Marszalek also emphasized that Crypto.com is well-positioned to benefit from a shift in monetary policy. The company reported $1.5 billion in revenue in 2024 and $700 million in reinvested gross profit. While he acknowledged that the firm has the financial foundation to pursue an initial public offering, no decision has been made at this time. Marszalek indicated that the firm is in discussions with major investment banks but prefers to remain private for now [2].

In addition to rate cut expectations, Crypto.com has made strategic moves to expand its market presence. The company recently partnered with Trump Media and Technology Group to establish a treasury strategy for its native token, Cronos (CRO). Following the announcement, the token surged nearly 150% but has since pulled back to $0.27, reflecting broader market volatility. Marszalek emphasized the company’s interest in prediction markets, stating that the space represents a significant growth opportunity. He described the firm’s goal as becoming a leading liquidity provider in the U.S. for prediction market contracts, a sector currently dominated by platforms like Polymarket and Kalshi [2].

While the anticipated rate cut presents a positive outlook for digital assets, Marszalek cautioned that the broader economic environment remains a variable. A rate cut could occur due to growing concerns over economic slowdowns, which could dampen investor sentiment despite eased monetary policy. Additionally, the success of digital assets like Cronos will depend on their real-world utility and adoption. Marszalek noted that increased liquidity and reduced borrowing costs could accelerate institutional investment in digital assets, but long-term growth will hinge on infrastructure development and use cases [2].

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[1] title1 (https://www.fool.com/investing/2025/09/02/heres-why-a-fed-rate-cut-could-be-great-news-for-x/)

[2] title2 (https://cointelegraph.com/news/crypto-com-ceo-bets-fed-rate-cut-fuel-crypto-markets-in-q4)

[3] title3 (https://www.coindesk.com/markets/2025/09/02/federal-reserve-rate-cut-could-spark-a-revival-in-bitcoin-s-basis-trade)