Eagle Crest Asset Management

July 22, 2024

Fed May Signal Rate Cut with Softer Inflation Language

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.

July 22, 2024

10x Research Predicts Crypto-Friendly Government Post-Biden

According to Odaily, 10x Research has released a report indicating that a crypto-friendly government is likely to take office following President Biden's decision not to seek re-election. Historically, this transition often results in the resignation of the SEC Chairman when a new administration is elected. Although SEC Chairman Gary Gensler's term is set to end on June 5, 2026, the report suggests he is most likely to resign in January or February of 2025.

July 22, 2024

President Biden Announces Decision Not To Seek Reelection

According to CoinDesk, President Joe Biden has announced that he will not be seeking reelection. This decision marks a significant moment in U.S. politics as it opens the field for new candidates in the upcoming presidential race. Biden, who has served as the 46th President of the United States, made this announcement today, signalling a shift in the political landscape.Biden's tenure has been marked by various challenges and achievements, including navigating the country through the COVID-19 pandemic, addressing climate change, and implementing economic recovery measures. His decision not to run for a second term will likely lead to a competitive primary season as potential candidates from both major parties prepare to campaign for the presidency.The announcement has already sparked discussions and speculations about who might emerge as the frontrunner in the next election. Political analysts are closely watching key figures within the Democratic Party, as well as potential Republican challengers, to see how this decision will influence their strategies and platforms. Biden's choice not to seek reelection may also impact his current administration's focus and priorities in the remaining time of his presidency.As the political landscape evolves, the American public and international observers will be keenly interested in the developments leading up to the next presidential election. Biden's announcement is expected to have far-reaching implications for the future of U.S. politics and governance.

July 21, 2024

SEC Forms Interagency Securities Committee To Combat Fraud

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.

July 19, 2024

ZA Bank Offers Reserve Banking Services For Stablecoin Issuers In Hong Kong

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.

July 19, 2024

Hong Kong To Propose Stablecoin Regulation By Year-End

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.

July 19, 2024

Argentina Implements Tax Amnesty for Crypto Assets

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.

July 19, 2024

South Korea Implements Comprehensive Cryptocurrency Regulation

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.

July 19, 2024

Investors Shift Focus Amid Speculation Of Fed Rate Cuts

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.

July 18, 2024

Cash App To Cease Operations In The UK After Six Years

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.