The Federal Reserve has announced plans to purchase $40 billion in Treasury securities as part of its Treasury Reserve Management Purchases, effective December 12, 2025. This initiative aims to bolster liquidity in both traditional and cryptocurrency markets, reversing previous balance sheet reduction efforts. The decision follows a recent rate cut by the Federal Open Market Committee (FOMC). Analysts suggest this policy could benefit risk assets, with Coinbase Institutional highlighting the potential for increased USD liquidity to positively impact crypto valuations. Additionally, the Fed reaffirmed its commitment to Countering the Financing of Terrorism in its latest policy statement.