Monetary Policy Announcements and Stablecoin Returns

This paper examines whether stablecoin returns respond to U.S. monetary policy announce ments. Using daily data for 23 stablecoins from 2014 to 2025, we analyze return dynamics around Federal Open Market Committee (FOMC) announcement days. Returns are computed in basis points and equal-weighted and value-weighted stablecoin portfolios are constructed. Panel regressions with stablecoin fixed effects show that stablecoin returns are higher on FOMC announcement days. Across specifications, the estimated effect ranges between approximately 3 and 4 basis points and remains robust after controlling for Bitcoin and Ethereum returns. Event study specifications indicate that the abnormal return is concentrated on the announcement day itself.