Investment Education

According to Odaily, the U.S. Securities and Exchange Commission (SEC) has established the Interagency Securities Committee (ISC) to enhance coordination among federal, state, and local securities fraud agencies. The ISC aims to improve fraud prevention, share insights on emerging threats, and develop a unified approach to combating financial fraud. Quarterly meetings will be held to discuss trends, scams, and mitigation strategies. ISC Chairman and SEC Enforcement Division Director Gurbir S. Grewal, along with SEC Investor Advocate Cristina Martin Firvida, emphasized the benefits of multi-level cooperation. The ISC comprises over 100 agencies, providing a platform for experts and law enforcement to share information and innovative methods.

According to Odaily, Hong Kong's virtual bank ZA Bank has announced the provision of exclusive reserve banking services for stablecoin issuers under the new stablecoin licensing regime. This framework mandates that stablecoin issuers must hold reserve assets in local banks to ensure market stability. ZA Bank has become the first digital bank to offer such services and is collaborating with Yuancoin to promote innovation and stability in digital assets. The bank is currently in discussions with ten other stablecoin companies and is actively supporting the policies of the Hong Kong Monetary Authority.

According to Odaily, Hong Kong's Deputy Secretary for Financial Services and the Treasury, Joseph Chan Ho-lim, announced during a Legislative Council subcommittee meeting on Web3 and virtual asset development that the government is drafting the second version of regulations for stablecoin issuers. The aim is to submit the draft to the Legislative Council for review by the end of this year.

According to Odaily, the Argentine government has signed a fiscal plan this week that includes a tax amnesty for individuals declaring assets worth $100,000, including registered crypto assets. Roberto Silva, Chairman of the National Securities Commission of Argentina, stated that this amnesty could alleviate pressure from the Financial Action Task Force (FATF). An analysis report from the International Monetary Fund (IMF) indicated that FATF has threatened to place Argentina on a grey list, which would increase monitoring of the country, potentially stifle foreign direct investment, raise international interest rates, and possibly lead to a decline in GDP.Silva mentioned that the registration of crypto assets is the first step towards regulation, hinting that these rules might follow those implemented in the United States. Experts believe this move could help Argentina regulate its cryptocurrency market. In May and June of this year, Argentina intensified its crackdown on crypto-related crimes. The prosecutor's office conducted 64 raids, resulting in the arrest of 20 domestic and 10 international criminals involved in smuggling, money laundering, and illegal gambling. Argentine leaders are scheduled to meet with FATF in Paris in October, where the task force will continue to assess Argentina's risks related to money laundering and terrorist financing.

According to PANews, South Korea's first comprehensive cryptocurrency regulatory framework has come into full effect, focusing on investor protection. The new law, known as the Virtual Asset User Protection Act, was officially approved on July 18, 2024, and includes a one-year grace period to finalize regulatory details. This legislation imposes stricter requirements on digital asset exchanges, mandating that South Korean crypto exchanges store at least 80% of user deposits in cold wallets to separate user funds from the exchange's own assets. Additionally, exchanges must entrust user cash deposits to local licensed banks and maintain cryptocurrency reserves equivalent to the quantity and type of customer deposits. Furthermore, South Korean crypto services are now required to purchase adequate insurance or establish reserve funds to address potential hacking incidents or liquidity crises. Besides measures to protect user funds, the law also mandates exchanges to implement real-time monitoring systems to report suspicious transactions that may be illegal. Companies failing to comply with the new regulations may face penalties from the Financial Services Commission (FSC) or have their services suspended.

According to Bloomberg, a weeklong decline in almost every major group has led to speculation that the central bank may ease its efforts to control inflation. This has prompted a shift in investor focus. While data suggesting the Federal Reserve is close to cutting rates would typically support this trend, Thursday's market surge did not fully align with that expectation.Investors have moved away from 'over-crowded' megacap leaders and are now exploring 'down-cap' opportunities. In late trading hours, Treasury yields also experienced significant changes. Analysts caution that while there is enthusiasm about the broadening of US equity markets, there is also a risk of potential bull traps. The rotation into smaller-cap stocks is still in its early stages and cannot yet be confirmed as a long-term investment trend.Some digestion of this rotation is necessary after the significant market movements of the past week. Although the rotation could persist for weeks, driven by favorable economic data and an over-owned tech sector, some experts advise against aggressive allocations to cyclicals for anything other than tactical capital. Concerns about economic growth remain, with corporate earnings and Federal Reserve commentary suggesting that investors may be too complacent about slowdown risks.As the Federal Reserve begins a rate-cutting cycle, markets often react positively initially and for a short period afterward. However, the Fed typically cuts rates late in the economic cycle, not early when small-cap stocks usually gain attention. In the near term, the rotation into smaller stocks may continue as markets anticipate easier monetary conditions this fall. The key question is whether this will lead to a gradual cooling of inflation and job markets or a more abrupt and painful adjustment.

According to Odaily, Block Inc., the cryptocurrency company founded by Jack Dorsey, has announced plans to shut down its Cash App service in the United Kingdom. The platform, which has been operational in the UK for six years, will cease its services on September 15. The company communicated this decision to its customers on Thursday.

According to CryptoPotato, Ripple has made significant strides in its ongoing legal battle with the US Securities and Exchange Commission (SEC). The conflict, which began in December 2020, centers around allegations that Ripple and some of its executives conducted an unregistered securities offering through certain XRP sales. The case has seen numerous developments over the years and entered its trial phase in April 2024.Ripple has secured three partial court victories in 2023, which many believe have given the company an upper hand. The most notable of these occurred nearly a year ago when Judge Torres ruled that Ripple’s programmatic sales to secondary trading platforms do not constitute offers of investment contracts. Following this, the court dismissed the SEC's intention to appeal the decision, and Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all charges.Despite these victories, the final resolution of the case remains pending and could be delayed indefinitely due to the complexity of the legal process and potential appeals. However, some experts are optimistic about a near-term resolution. American lawyer Jeremy Hogan predicts the case could conclude before the end of the summer, while Fred Rispoli has suggested a probable settlement date of July 31. Ripple’s CEO Garlinghouse also expressed hope for a resolution “very soon,” though he did not confirm whether settlement talks are currently underway.The anticipation of a resolution has positively impacted the price of XRP. On July 18, the token’s price briefly surpassed $0.63, a level last seen in March, and its market cap rose above $34 billion before settling at $32.5 billion. This surge temporarily made XRP the sixth-largest cryptocurrency by market capitalization.The outcome of the Ripple v SEC lawsuit remains uncertain, but its resolution could have significant implications for the price of XRP and the broader cryptocurrency market.

According to Odaily, the Greek government is planning to introduce a tax framework for cryptocurrencies and digital assets. Although the government has not yet officially recognized these assets, a special committee is set to submit its findings on cryptocurrencies and digital assets to the Ministry of Economy and Finance. It is expected that by January 2025, cryptocurrencies will be included in the tax system. Profits from cryptocurrency and digital asset transactions will be taxed as capital gains from the sale of securities at a rate of 15%.

According to BlockBeats, the U.S. Securities and Exchange Commission (SEC) has canceled a closed-door meeting that was originally scheduled for 2 PM Eastern Time on July 18. The information was disclosed on the SEC's official website.Previously, BlockBeats reported that sources indicated the meeting might address the ongoing Ripple lawsuit and potential settlement options. An internal notice suggested that, given Ripple's significance and the SEC's involvement in multiple legal cases, many in the crypto community speculated that this meeting would be a focal point.