Weekly Update: Regulatory Acapella
Bad news, good news
The decline in US job openings and the BoE's decision last week, led to a rebirth of optimism as some investors started to believe that large rate hikes will come to an end. However, Atlanta FED president, Raphael Bostic, said he would be willing to bring FED funds to 4.5% by year end, which is a 125pt increase from the current rate.
Biden vs rest of world
The decision of OPEC+ (including Russia) to cut daily oil production by 2m bbl is perceived by the White House as an act of defiance as the Biden's administration is trying to keep oil and gas prices lower ahead of November congressional elections.
Following some research the global payment network SWIFT found that SWIFT would be a good solution for CBDC (Central Bank Digital Currencies). 14 central and commercial banks are now collaborating in a testing environment.
Europe has banned any crypto payments from Russia and removed the cap of €10,000. The new sanctions also include import bans totalling up to €7bn. European policymakers pushed for more severe sanctions against Russia as a result of the so-called "sham referenda" conducted in the occupied regions of Donetsk, Kherson, Luhansk and Zaporizhzhia.
Easier than ever
OpenSea has launched SeaDrop, an open-source smart contract that will handle all the cumbersome and tedious task of deploying custom smart contracts for NFT projects.
The co-founder of troubled crypto lender Celsius, Daniel Leon, has resigned this week following the departure of CEO Alex Mashinsky last week. Celsius is currently accepting bid for its assets and considering an auction on 20-Oct.
Absence is the greatest woe
The FSOC (Financial Stability Oversight Council) warned on last Monday that cryptocurrencies could be a threat to US financial system stability, adding to voices pushing for more regulation and tighter oversight of crypto.
The future is assured
Bridgewater Associates founder, Ray Dalio, announced on Tuesday that he was giving up control of the world's largest hedge fund that he funded in 1975. The $150bn in assets are now in the hand of the next generation of leaders.
No one is above the law
The SEC announced charges against celebrity Kim Kardashian for promoting cryptocurrency EMAX without disclosing that she was paid $250K to publish the post on Instagram. She has agreed to pay $1.26m as part of a settlement and will not promote any cryptocurrencies for the next 3 years.
What's to come
Unemployment data for the US (07-Oct), Canada (07-Oct) & UK (11-Oct); Inflation data for Germany and US (12/13-Oct), GDP data for UK (12-Oct), FOMC minutes (12-Oct)