Investment Learning

  • September 14, 2024

SEC's Intervention in Cryptocurrency Industry Causes $15 Billion Losses for Retail Investors

According to Cointelegraph: Prominent pro-crypto attorney and U.S. Senate candidate John Deaton has accused the Securities and Exchange Commission (SEC) of excessive intervention in the cryptocurrency industry, leading to retail investors losing over $15 billion. Deaton emphasized that he intends to hold the SEC accountable for its regulatory actions, especially since he believes Senator Elizabeth Warren “won’t do it.”This statement comes just weeks after Deaton, a vocal advocate for XRP, secured the Republican nomination for the U.S. Senate in Massachusetts. He is set to face off against Democratic Senator Elizabeth Warren in the upcoming November election.SEC's Changing Stance on CryptocurrenciesIn a surprising development, the SEC appears to be softening its stance on cryptocurrencies. A recent court filing indicated that the SEC no longer considers tokens themselves as securities. This shift came to light in an amended complaint against Binance, with the SEC expressing regret for the "confusion" caused by its previous statements regarding tokens being securities.The move is seen as a major turnaround, particularly in light of the SEC's earlier position on XRP, which it had classified as a security. Deaton highlighted this irony, stating, "All I asked was for the SEC to honor the law and make clear that the token itself (XRP) was NOT the security."Ongoing Criticism of the SECThe SEC continues to face backlash for its regulatory approach to the cryptocurrency industry. Just recently, the commission settled with eToro, forcing the platform to halt trading for nearly all crypto assets in the U.S. and imposing a $1.5 million fine.Deaton strongly criticized the SEC's actions, accusing the agency of "gross overreach" that has cost investors billions. In a post on X (formerly Twitter), Deaton said, “The SEC’s misconduct and gross overreach caused small investors over $15 billion. On behalf of those 75K small investors I represented, we do not accept the SEC’s apology.”

Read More
  • September 13, 2024

SBF Appeals Fraud Conviction, Requests New Judge

According to Odaily, SBF has officially appealed his fraud conviction. In a 102-page appeal submitted on Friday afternoon, SBF's lawyers requested the U.S. Court of Appeals for the Second Circuit to overturn the original conviction and appoint a new judge for a retrial, citing unfair bias from the presiding judge. Last November, a New York jury found SBF guilty of seven counts of fraud and conspiracy related to the collapse of his cryptocurrency trading platform in November 2022. In March of this year, Judge Lewis Kaplan of the Southern District of New York (SDNY) sentenced SBF to 25 years in prison. SBF has currently served six months of his sentence.

Read More
  • September 12, 2024

U.S. Weekly Jobless Claims Reach 230,000

According to BlockBeats, the number of initial jobless claims in the United States for the week ending September 7 reached 230,000. This figure aligns with the expected number of 230,000 claims. The previous week's number was revised from 227,000 to 228,000.

Read More
  • September 12, 2024

European Central Bank Lowers Deposit Facility Rate to 3.50%

According to Odaily, the European Central Bank (ECB) has reduced its deposit facility rate for the second time within its current cycle, lowering it from 3.75% to 3.50%. This adjustment brings the rate to its lowest level since June 2023 and aligns with market expectations.As of September 12, the ECB's main refinancing rate stands at 3.65%, consistent with forecasts and down from the previous rate of 4.25%. The deposit facility rate, also as of September 12, is now 3.50%, matching market predictions and down from the prior rate of 3.75%.

Read More
  • September 12, 2024

Russia's Largest Banks To Support Digital Ruble By July Next Year

According to CoinDesk, Russia's largest banks are required to support a digital version of the ruble for customers starting July next year. This initiative by the Bank of Russia aims to facilitate the use of the digital ruble for both retail and commercial purposes. The central bank has mandated that these banks enable their customers to open and top up digital ruble accounts, make transfers, and accept digital rubles within their infrastructure. Following this initial phase, the widespread use of the digital national currency is planned, ensuring it is accessible to citizens and businesses alike, allowing them to use it on an equal basis with cash and non-cash funds.The digital ruble is a central bank-issued digital currency (CBDC). Globally, banks have been exploring the use of CBDCs for various purposes, including retail, institutional, and wholesale applications. Some countries, such as the Bahamas and Nigeria, have already introduced their own CBDCs. In Russia, the central bank has been testing its CBDC with 12 banks. Earlier this month, the trials expanded significantly, involving 9,000 participants, up from the initial 600.

Read More
  • September 12, 2024

Eurozone Government Bond Yields Rise Ahead Of ECB Rate Decision

According to BlockBeats, on September 12, XTB MENA market analyst Milad Azar noted that Eurozone government bond yields have increased ahead of the anticipated rate cut by the European Central Bank (ECB). Azar stated in a report that yields might eventually decline if there are further indications of rate cuts. He mentioned, 'After the ECB announces its rate decision, yields may resume their downward trend, especially if the ECB hints at additional rate cuts.' The market has fully priced in the expectation that the ECB will lower the deposit rate by 25 basis points tonight. According to Tradeweb data, the yield on 10-year German government bonds rose by 2.5 basis points during the day, reaching 2.123%.

Read More
  • September 11, 2024

U.S. Lawmakers Investigate SEC Over Alleged Politically Motivated Hiring

According to Odaily, several U.S. lawmakers sent a letter to SEC Chairman Gary Gensler on September 11, expressing concerns over potential politically motivated hiring practices within the agency. The joint letter, signed by Judiciary Committee Chairman Jim Jordan (R-Ohio), Financial Services Committee Chairman Patrick McHenry (R-N.C.), and Oversight and Accountability Committee Chairman James Comer (R-Ky.), outlines specific worries regarding political considerations in SEC's recruitment of senior employees.The investigation aims to determine whether the SEC has taken political affiliations into account when hiring senior staff, potentially compromising the agency's impartiality and violating federal law. The lawmakers cited evidence suggesting that under Gensler's leadership, political factors have influenced the hiring of senior personnel. The letter specifically mentions Dr. Haoxiang Zhu, who was appointed as Director of Trading and Markets in November 2021. Reportedly, prior to his appointment, Zhu assured Gensler of his political compatibility in an email dated May 2021, stating, 'I believe I am in the right place politically,' following discussions with Gensler about the role.

Read More
  • September 11, 2024

CPI Report Expected to Disappoint Short-Term Bond Market

According to Odaily, ClearBridge Investments' investment strategy analyst Josh Jamner has indicated that today's Consumer Price Index (CPI) report is likely to disappoint the short-term bond market. The market has already anticipated that the Federal Reserve will cut interest rates by more than 250 basis points by the end of 2025. Jamner noted that while today's less favorable news will not prevent the Federal Reserve from beginning to normalize its interest rate policy next week, it may lead to a reframing of the ongoing debate.Further indications suggest that inflation may be more persistent than previously thought, which could result in a slower and smaller rate-cutting cycle.

Read More