Today in crypto, an economist forecasts the broader crypto market to surge if the US Federal Reserve continues to cut rates, the FTX Recovery Trust will release $1.6B to creditors in a September payout. Meanwhile, the European Union is set to include crypto platforms in its latest sanctions against Russia.

Bitcoin and alts set for Fed ‘jolt,’ market isn’t ready: Economist 

Crypto market participants may be underestimating how aggressive the US Federal Reserve will be in shifting its policy direction, according to an economist.

“Markets are underpricing the likelihood of rapid rate cuts in the coming months on the part of the Federal Reserve,” economist Timothy Peterson told Cointelegraph on Friday.

“There has never been a gradual reduction in rates like that currently envisioned by the Fed,” Peterson said, explaining that he expects “the surprise effect” to kick in and potentially catch the market offside.

“It will jolt Bitcoin and alts up substantially, and I think that will happen in the next 3-9 months.”

FTX Recovery Trust to unlock $1.6B for creditors in September disbursement

The FTX Recovery Trust, the entity overseeing the distribution of funds from the bankrupt crypto exchange, announced a third tranche of distributions to creditors, worth about $1.6 billion.

According to a Friday announcement, the distribution is scheduled for Sept. 30, and creditors should receive the funds in their accounts within three business days of the payment date.

The third distribution includes a 6% payout for Dotcom Customer claims, a 40% distribution for US Customer Entitlement Claims and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of September’s payout.

FTX’s Recovery Trust began reimbursing creditors in February with a $1.2 billion payout, and followed it up with a $5 billion distribution in May. The trust has up to $16.5 billion in assets earmarked for its creditors and former customers.

EU targets crypto platforms in latest Russia sanctions package

The European Union will include cryptocurrency platforms in its latest financial sanctions against Russia, marking the first time digital asset services have been directly targeted.

The measures, part of the bloc’s 19th sanctions package, prohibit all cryptocurrency transactions for Russian residents and restrict dealings with foreign banks tied to Russia’s alternative payment systems, according to a statement by European Commission President Ursula von der Leyen published Friday.

The package also seeks to block transactions with entities operating in Russian special economic zones.

“As evasion tactics grow more sophisticated, our sanctions will adapt to stay ahead,” von der Leyen said. “Therefore, for the first time, our restrictive measures will hit crypto platforms. and prohibit transactions in cryptocurrencies.”

She added, “We are listing foreign banks connected to Russian alternative payment service systems. And we are restricting transactions with entities in special economic zones.”

The sanctions are not yet final and require approval from all 27 EU member states.