According to Bloomberg, Silvergate has agreed to pay $43 million to the Federal Reserve for allegedly failing to comply with anti-money laundering (AML) regulations. The settlement was announced by the Fed on Friday. This agreement comes as part of ongoing efforts to enforce compliance with financial regulations and ensure the integrity of the financial system.
According to BlockBeats, the CME's 'FedWatch' tool indicates a 93.3% probability that the Federal Reserve will keep interest rates unchanged in August, with a 6.7% chance of a 25 basis point rate cut.Looking ahead to September, the likelihood of the Fed maintaining the current interest rates drops to 0%. There is an 88.6% probability of a cumulative 25 basis point rate cut, an 11% chance of a cumulative 50 basis point rate cut, and a 0.3% probability of a cumulative 75 basis point rate cut.
According to BlockBeats, the CME 'FedWatch' tool indicates a 93.3% probability that the Federal Reserve will keep interest rates unchanged in August. There is a 6.7% chance of a 25 basis point rate cut during the same period.Looking ahead to September, the likelihood of the Federal Reserve maintaining the current interest rates drops to 0%. The probability of a cumulative 25 basis point rate cut stands at 89.6%, while there is a 10.2% chance of a cumulative 50 basis point cut. The probability of a cumulative 75 basis point rate cut is 0.3%.
According to Odaily, the Bank of Canada has reduced its benchmark interest rate from 4.75% to 4.5%. This marks the second consecutive rate cut, aligning with market expectations.
According to Odaily, the US stock market opened with significant declines. The Dow Jones Industrial Average fell by 0.53%, the S&P 500 Index dropped by 0.95%, and the Nasdaq Composite Index decreased by 1.48%. Tesla (TSLA.O) experienced a sharp decline of 8.63% following its Q2 net profit, which fell short of expectations. Alphabet (GOOG.O) also saw a decrease of 4.69%, despite exceeding Q2 performance expectations, as the company anticipates increased capital expenditures within the year.
According to BlockBeats, Thailand will open registration for digital wallets from August 1 to September 15. The initiative is expected to attract 45 million participants, as stated by the Thai Deputy Finance Minister. The government has allocated 450 billion baht for this program. Digital cash spending is set to commence in the fourth quarter of this year.
According to Odaily, analysts at Société Générale suggest that the Federal Reserve might begin cutting interest rates in September, but any depreciation of the dollar is expected to be limited. The bank's forex strategists noted that the dollar's rebound in 2021-2022 has provided ample room for downward correction. However, unless the U.S. economy slows down significantly more than anticipated, U.S. interest rates are 'very unlikely' to approach pre-pandemic levels of 2020.They highlighted that the most significant fluctuations are expected in the dollar-yen exchange rate, which could drop from the current 156.197 to 140 by early 2025. The yen has been the currency most adversely affected by rising U.S. interest rates and yields. Additionally, they mentioned that at some point in 2024 or 2025, the euro-dollar exchange rate might increase from the current 1.0850 to 1.15.
According to Odaily, approximately a year and a half after the collapse of crypto-friendly banks in the United States, European banks are making strides to rejuvenate the 24/7 payment market for digital assets. In recent weeks, two Swiss banks, AMINA Bank AG and Sygnum Bank AG, have launched real-time payment and settlement networks. Their objective is to fill the void left by the Silvergate Exchange Network (SEN) and Signature Bank's Signet platform, both of which played crucial roles in providing liquidity to the crypto market before their collapse in March 2023.Company documents reveal that in the quarter preceding their shutdown, SEN processed $117 billion in transfers, while Signet handled $275.5 billion. The introduction of these new networks by AMINA Bank AG and Sygnum Bank AG aims to restore the seamless liquidity and continuous transaction capabilities that were lost with the closure of SEN and Signet. This move is seen as a significant step towards stabilizing and advancing the digital asset ecosystem in Europe.
According to CoinDesk, the U.S. House of Representatives has passed a bill to establish a working group to investigate the use of cryptocurrencies in terrorism and money laundering. The bill, sponsored by Rep. Zach Nunn (R-Iowa), aims to create a temporary group under the Treasury Department to assess and recommend measures to prevent the misuse of digital assets by bad actors. The group would include industry representatives, such as members from blockchain intelligence companies.Despite the House's approval, the bill is unlikely to advance further without a corresponding Senate measure. This legislation is part of a broader effort by Congress to address cryptocurrency regulation, although the Senate has yet to match the House's progress. The bill's passage follows other crypto-friendly measures, such as the Financial Innovation and Technology for the 21st Century Act (FIT21), which have also cleared the House Financial Services Committee.In a speech on the House floor, Nunn emphasized the importance of the legislation in enhancing national security, protecting digital assets, and fostering the development of financial and internet technology within the United States. However, Jaret Seiberg, an analyst at TD Cowen, suggested that the bill serves more as a political gesture. He noted that it allows crypto critics to push for stricter money laundering regulations while providing crypto advocates with political cover against accusations that digital assets facilitate criminal activities.As the 2024 presidential contest approaches, cryptocurrency has become a significant political issue. However, the likelihood of a divided Congress reaching a consensus on comprehensive crypto regulation remains slim. Industry insiders are closely monitoring relevant provisions in the National Defense Authorization Act, which sets the nation's defence priorities.Additionally, the Digital Chamber sent a letter to Vice President Kamala Harris, urging her to adopt a positive stance on digital assets and blockchain technology. The letter called for Harris to include a pro-crypto position in the Democratic party's platform and to select a running mate with a history of supporting innovation in digital asset technology. This appeal aligns with similar requests from other industry participants, advocating for a more crypto-friendly approach from the potential Democratic leader.
According to Odaily, the Federal Reserve's upcoming policy meeting next week may see the removal of the term 'elevated' when describing inflation. If this change occurs, it would be the strongest indication yet that the Fed plans to cut interest rates as early as September, initiating a new easing cycle. Adjusting the description of inflation to a milder term could also lead to modifications in another key sentence of the current policy statement: the Fed will not cut rates until officials are 'more confident that inflation is moving sustainably toward 2%.'In June, 2024 FOMC voting member Raphael Bostic indirectly suggested that an inflation rate of 2.5% or below could serve as a benchmark for considering a change in the inflation description. Many economists believe that the June PCE data, set to be released on July 26, will fall to or below this threshold.