According to BlockBeats, data from CME's 'FedWatch' tool on September 25 indicates that there is a 39.7% probability of a 25 basis point rate cut by the Federal Reserve in November. Additionally, there is a 60.3% probability of a 50 basis point rate cut.
According to PANews, stablecoin research firm Bluechip has revealed on the X platform that for every 50 basis points the Federal Reserve cuts interest rates, Tether's annual revenue decreases by $488 million, while Circle's annual revenue drops by $144 million. As the Federal Reserve lowers interest rates, the income stablecoin issuers earn from U.S. Treasury bonds declines, potentially forcing them to seek higher-risk investments to offset the revenue loss.Additionally, Bluechip shared a screenshot indicating that as of September 22, Circle and Tether collectively hold over $125 billion in U.S. Treasury bonds.
According to CoinDesk, Turkey has decided not to proceed with an additional tax package that would have imposed a levy on profits from stock trading and cryptocurrency. Vice President Cevdet Yilmaz confirmed the decision, stating that the proposal had been previously discussed but is no longer on the agenda. The focus will now shift to narrowing tax exemptions.In June, the Turkish government had already postponed plans to tax stocks following a decline in the country's equity market due to the news of potential additional taxes. Finance Minister Mehmet Simsek announced at the time that the draft tax study for the stock exchange would be re-evaluated based on feedback from relevant parties.Globally, countries like the U.K. and Japan are also considering how to effectively tax cryptocurrencies and whether reforms are needed. The Turkish Presidency did not immediately respond to CoinDesk's request for comment.
According to Odaily, senior Democratic member of the U.S. House Financial Services Committee, Maxine Waters, has expressed hope for reaching a significant agreement on stablecoin legislation by the end of this year. Waters, along with Republican Representative Patrick McHenry, has been working on a regulatory framework for stablecoins since 2022. Waters emphasized that the new legislation should prioritize consumer protection and robust federal oversight while allowing multiple pathways for creating stablecoins, with the Federal Reserve playing a leading role. McHenry remains optimistic about the progress, although he acknowledges that Congress has limited time to finalize the legislation before the year's end. This effort could potentially conclude a two-year debate in Washington regarding stablecoin regulation.
According to Odaily, JPMorgan Chase CEO Jamie Dimon expressed in an interview with The Times of India that he believes interest rates may remain elevated for an extended period. Dimon cited the complex geopolitical landscape and extreme global fiscal spending as factors contributing to this outlook. He estimated the likelihood of a soft landing to be less than 70%-80%. Dimon also mentioned that inflation could rise over time.
According to Cointelegraph, over 40 United States Republicans have urged the US Securities and Exchange Commission (SEC) to revoke its Staff Accounting Bulletin No. 121 (SAB 121) rule. This call comes after a repeal bill garnered bipartisan support but was ultimately vetoed.SAB 121, which alters custody rules for cryptocurrencies, has been criticized for weakening consumer protections and stifling financial innovation. In a letter dated September 23, House Financial Services Committee Chair Patrick McHenry, Senator Cynthia Lummis, and 40 other politicians expressed their concerns to SEC Chair Gary Gensler. They argued that the rule, which mandates SEC-reporting entities to record cryptocurrency holdings as liabilities on their balance sheets, was issued without consulting any prudent regulators and deviates from established accounting standards.The politicians claimed that SAB 121 fails to reflect custodians' legal and economic obligations and puts consumers at risk of loss. They also criticized the SEC for issuing the rule under the guise of staff guidance, thereby evading the notice and comment rulemaking process required by the Administrative Procedure Act. They asserted that rescinding SAB 121 is the only appropriate action and well within the SEC’s authority.The letter was sent before the House Financial Services Committee’s hearing with the SEC on September 24. The politicians also criticized the SEC’s Office of Chief Accountant for allegedly working with certain institutions to avoid the balance sheet reporting requirements, potentially leading to inconsistency across the board. Notably, the Bank of New York, the largest custodian bank in the US, reportedly received an exemption from SAB 121, as mentioned in a September 17 hearing in the Wyoming legislature.Supporters of the letter primarily include Republican members from the House Financial Services and Senate Committee on Banking, Housing, and Urban Affairs. House Representatives French Hill, Tom Emmer, and Senators Bill Hagerty and Tim Scott were among the signatories. President Joe Biden vetoed the SAB 121 repeal bill in June after receiving bipartisan support in both the House and Senate. The House subsequently failed to overturn the veto on July 10, falling 60 votes short of the two-thirds majority needed for it to move to the Senate.
According to CoinDesk, Telegram has made significant changes to its privacy terms, now allowing the app to share user information such as IP addresses and phone numbers with judicial authorities in cases of potential criminal conduct. This update was announced by CEO Pavel Durov in a post on the app on Monday.The changes follow Durov's arrest in France last month, where authorities accused Telegram of enabling illegal activities, including drug trafficking, distribution of child sexual abuse material (CSAM), and fraud. In response to these allegations, Durov promised to make changes and emphasized the difficulty of balancing privacy and security. Earlier this month, Telegram took steps to block users from uploading new media to combat bots and scammers.Previously, Telegram's privacy policy stated that user information would only be shared if the user was suspected of terrorism. The new terms mark a significant shift from this stance. Telegram, known for its encrypted messaging services, has faced pressure from various authorities, including an attempted ban by Russian authorities in 2018, which led Durov to relocate to Europe.Durov, who denies the charges against him, has been ordered to remain in France until the investigation concludes. He is currently out on bail.
According to Cointelegraph, blockchain solutions provider Digital Asset and the Depository Trust & Clearing Corporation (DTCC) have successfully completed their US Treasury Collateral Network pilot project on the Canton Network. The initiative involved 26 market participants and facilitated 100 transactions using tokenized 'digital twins' of Treasury bonds (USTs) across four use cases. The project aimed to demonstrate transaction flows and scenarios, including cases of default, using the Canton Network Global Synchronization and DTCC LedgerScan features.In the first use case, a digital twin of real-world assets (USTs) was created for an investor and registered with the central security depository. This digital twin could be used for trading, lending, or collateral purposes. The second use case involved encumbering the tokenized UST assets in response to a margin call, with the collateral transferred in an atomic transaction visible in real-time. The third scenario saw the investor calling for the return of their margin, which was settled instantly, a process that typically takes a day or longer. In the final case, the investor defaulted, and the counterparties informed the custodian to seize the encumbered USTs. The margin app operator computed the quantities to transfer, ensuring the transfer of ownership was fully traceable and auditable on the Canton Network.The pilot project utilized sovereign blockchains on the Canton Network, launched in June 2023 by Digital Asset and several large financial institutions. The network ensured instantaneous transactions while allowing each party to maintain control over their data and privacy. DTCC tracked and reconciled changes to tokenized and underlying holdings across the market. The concept of digital twins was adopted by the Commodity Futures Trading Commission’s Global Markets Advisory Council for Digital Asset Markets Subcommittee earlier in 2024. The project report highlighted that fulfilling claims on an asset is governed by the Uniform Commercial Code (UCC) and can vary depending on blockchain technology. In this pilot, securing such claims was integrated into the app code, workflow, and legal contract.
According to Odaily, Goldman Sachs has forecasted a gradual weakening of the U.S. dollar following a significant interest rate cut by the Federal Reserve. The investment bank has revised its predictions for several major currencies, including the euro, the British pound, and the Japanese yen, in light of the reduced attractiveness of U.S. yields. Goldman Sachs strategists, including Kamakshya Trivedi, noted in a report that while they still believe the dollar's overvaluation will not be quickly or easily eroded, the threshold for such a change has been lowered somewhat.Based on the latest dollar forecast, Goldman Sachs, which has been bullish on the British pound since the beginning of the year, now expects the pound to reach 1.40 against the dollar within 12 months, up from the previous estimate of 1.32. This marks the first time since 2021 that the outlook has reached this level, placing it among the highest forecasts on Wall Street.
According to Odaily, the dollar index (DXY) experienced a short-term increase of nearly 20 points, currently standing at 100.93. This rise follows the release of the preliminary US September S&P Global Services PMI, which recorded a value of 55.4. The expected value was 55.3, while the previous value was 55.7.