Regulation
US Fed Meeting Announcements & Jerome Powell Speech
The U.S. Federal Reserve has opted to keep its benchmark federal funds rate unchanged at 5.25%-5.50%. Despite ongoing discussions about inflation and economic growth, this decision comes alongside revised projections suggesting only minimal rate cuts soon.
U.S. Fed Meeting Announcements: Key Outcomes and Statements
Federal Reserve Chairman Jerome Powell said that although the inflation has slightly declined, the current interest rates will remain unchanged in order to maintain the stability of the economy. This is consistent with the Feds cautious approach towards the target and the stability of inflation at 2%.
BREAKING : THE FEDERAL RESERVE HAS ONCE AGAIN DECIDED NOT TO RAISE OR CUT INTEREST RATES
THE FED WILL KEEP INTEREST RATES AT THE CURRENT LEVEL FOR NOW pic.twitter.com/UNr6TFWF65
— GURGAVIN (@gurgavin) June 12, 2024
In the meeting Powell noted that the efforts to cut down inflation have been quite “modest” unlike previous statements of standstill. In its updated projections, the Federal Reserve now expects one 25 basis point cut by the end of 2024, reversing its earlier projections of multiple cuts.
For the year 2025 there is also the expectation of further relaxation with predicted cuts of up to 100 basis points in view of the faster track towards the desired inflation rates.
Economic Indicators and Analyst Perspectives
The latest Consumer Price Index (CPI) report, released prior to the meeting, indicated a deceleration in inflation, contributing to the Fed’s revised outlook. May’s CPI showed an increase of only 3.3% year-over-year, down from April’s 3.4%, signalling a potential stabilization in price growth.
Economists such as the head of RSM, Joe Brusuelas, and James Knightley from ING have postulated that if this trend of low inflation is to be sustained then a rate cut could be a possibility in September. This view is based on the examination of consumer price indices and other economic data pointing towards a gradual move back towards the Fed’s inflation target.
Markets, after the Fed meeting responded positively to the news, with significant upticks in major indices. Nasdaq and S&P 500 went up as investors had positive expectations of the Fed’s measures on the monetary policy given the current economic conditions. However, the more moderate expectations for rate cuts have somewhat eased the initial excitement in sectors such as cryptocurrency, with only moderate gains in Bitcoin.
Jerome Powell Speech
Jerome Powell gave a detailed account of the state of the economy in his speech after the committee’s decision. Powell observed that the economy has improved a great deal, with many jobs created and unemployment rate remaining low, indicating the economy remains strong.
However, there are still risks that inflation will remain above the target, as the Fed continues to tread carefully.
Powell pointed out several areas of the economy that have been relatively strong and these include consumer consumption and business investment in equipment. The labor market is still healthy and is somewhat even stronger in the recent months than it was before the COVID-19 pandemic, which paints the picture of a balanced market with tight employment at 4.4%.
Powell’s speech was fairly optimistic while at the same time acknowledging that there are still risks that have to be managed, especially in terms of inflation.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.
Featured Image from Unsplash.com, chart from TradingView.com
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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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