Investment Education

According to Odaily, tokenization, which involves representing traditional assets like U.S. Treasury-backed money market funds through blockchain tokens, is becoming increasingly popular among traditional financial companies. Legal & General (L&G), a London-based pension and investment management firm overseeing $1.5 trillion in assets, is planning to enter the blockchain-based tokenization sector, a trend that is gaining favor among financial giants.This movement has been further accelerated by BlackRock, the world's largest asset manager, launching its BUIDL fund on the Ethereum blockchain. Other notable companies in this space include Franklin Templeton, State Street, and Abrdn. L&G executives have stated, 'We are evaluating ways to offer Legal & General Investment Management liquidity funds in tokenized form.'

According to Cointelegraph: Yuichiro Tamaki, the leader of Japan’s Democratic Party for the People (DPP), has proposed a plan to lower the tax rate on cryptocurrency gains to 20%. He announced this proposal in an X post on October 20, urging voters to support the DPP in the upcoming election if they favour separate taxation for crypto assets. Currently, crypto profits are taxed as miscellaneous income between 15% and 55%, depending on personal income.The ProposalTamaki’s plan aims to simplify the tax treatment of crypto assets, aligning it with the tax structure for stock market profits, which are taxed at a flat rate of 20%. The plan also proposes no tax event when exchanging one crypto asset for another, offering significant tax relief for investors. This move is intended to position Japan as a leader in the Web3 space by creating a more favorable regulatory environment for crypto investments.DPP’s policy statement. Source: DPPPolitical Landscape and UncertaintyThe DPP currently holds only 7 out of 465 seats in Japan’s House of Representatives, making the likelihood of implementing this plan uncertain. However, recent opinion polls from local news outlet Mainichi suggest the party could increase its seats to as many as 20 in the upcoming election on October 27. The Liberal Democratic Party and its coalition partner Komeito are expected to retain a majority of the seats, potentially limiting the DPP’s ability to enact this policy.Tax Reform Efforts in JapanEarlier this year, Japan's Financial Services Agency proposed a comprehensive overhaul of the country's tax code, including lowering crypto asset taxes by fiscal year 2025. Corporate crypto holders in Japan face a flat 30% tax on their holdings at the end of the financial year, regardless of profit or loss.Future ImplicationsWhile the DPP’s chances of winning a majority in the election are slim, Tamaki's crypto tax proposal has brought attention to the need for reform in Japan’s tax system for digital assets. The proposed reduction could make Japan more competitive in the global cryptocurrency market and encourage further innovation in the Web3 sector.

According to Odaily, a research report by Goldman Sachs indicates that the Bank of England is expected to accelerate its rate cuts. The report highlights that inflation and wage data, along with recent communications from the Bank of England, suggest a widespread market expectation of a 25 basis point rate cut in November. If inflation continues to decline, there are minimal obstacles to speeding up the rate cut process. Goldman Sachs economists still anticipate that by September 2025, the Bank of England will have consecutively reduced rates to 3%, which is faster than current market pricing.

According to Odaily, Ripple's Chief Legal Officer Stuart Alderoty recently commented on the U.S. SEC's formal appeal in the Ripple case, affirming that the ruling which determined XRP is not a retail security remains unchanged. Alderoty stated on X, 'This is not surprising at all—once again, everything is clear. The court's ruling that 'XRP is not a security' has not been appealed. This decision is the law of the land.'In its appeal, the SEC has challenged several key rulings, including the decision that Ripple executives Brad Garlinghouse and Chris Larsen's non-cash XRP distributions and sales did not violate securities laws. Ripple plans to file its own Form C next week as a cross-appeal against the institutional sales ruling. Both parties are preparing for an extended appeals process, which could impact the future classification and regulation of digital assets.Previously, it was reported that the U.S. SEC had formally appealed Judge Analisa Torres' ruling on XRP. On Thursday, the regulatory body submitted Form C to the U.S. Court of Appeals for the Second Circuit.

According to PANews, the Governor of the Central Bank of Brazil, Roberto Campos Neto, has announced plans to accelerate the regulation of asset tokenization and stablecoins by 2025. The bank is set to release new consultation opinions this month to gather more feedback on the approval rules for Virtual Asset Service Providers (VASPs) operating in the country. In a recent broadcast, Campos Neto stated that the bank is also working on establishing rules for VASPs. He disclosed that the bank will initiate a public consultation to seek opinions on the draft concerning the 'behavior, organization, and authorization processes' of these entities.

According to BlockBeats, on October 18, Russian President Vladimir Putin announced that Russia will provide its BRICS partners with opportunities to use digital currencies in their investment processes.

Our leaders continue to champion a narrative of economic strength and resilience, citing robust employment figures, growing GDP, and lower interest rates as indicators of prosperity. However, despite these optimistic proclamations, the reality on the ground often paints a different picture, making it hard to reconcile this supposed strength with the economic challenges many people face daily.

According to BlockBeats, on October 18, the U.S. Securities and Exchange Commission (SEC) officially appealed Judge Analisa Torres's ruling on XRP. On Thursday, the regulatory body submitted Form C to the U.S. Court of Appeals for the Second Circuit, reigniting the legal debate over whether the sale of XRP on cryptocurrency trading platforms meets the criteria for securities.The SEC has raised questions about key aspects of the court's decision, including the acquittal of Ripple executives and the distribution of XRP in non-cash forms. The outcome of this case could have significant implications for the future regulation of cryptocurrencies.

According to Odaily, European Central Bank (ECB) President Christine Lagarde has announced that the recent decision to cut interest rates was unanimously agreed upon. Lagarde indicated that inflation might reach the target level by next year. However, she noted that the current inflation forecast still faces bidirectional risks, with the downside risks being more significant than the upside risks.

According to BlockBeats, on October 17, European Central Bank President Christine Lagarde released the latest data indicating that economic growth is expected to weaken further. The survey also shows a slowdown in employment growth.Inflation is projected to decrease to the target level by next year. The risks to economic growth are skewed to the downside.