2025-07-18 20:12

Industry reaches landmark valuation Bitcoin breached key $120,000 mark earlier this week Lawmakers advance broader crypto regulation Analysts forecast bitcoin at $200,000 by year-end July 18 (Reuters) - The crypto sector's market value hit $4 trillion on Friday, according to CoinGecko, marking a milestone that reflects its shift from a nascent asset class to a central part of the global investment landscape. A wave of renewed optimism, regulatory clarity in key markets and rising institutional flows have catapulted the crypto sector to a new valuation peak. Sign up here. The U.S. House of Representatives passed a bill on Thursday to create a regulatory framework for U.S.-dollar-pegged cryptocurrency tokens, known as stablecoins, sending the bill to President Donald Trump, who is expected to sign it into law. "The arrival of the Trump legislation signaled an about-turn in attitudes towards the crypto industry, but legislators are still exercising some caution," said Derren Nathan, head of equity research, Hargreaves Lansdown. House lawmakers also passed two other crypto bills, sending them next to the Senate for consideration. One lays out a regulatory framework for crypto, while the other seeks to ban the U.S. from issuing a central bank digital currency. The $4 trillion milestone underscores how far the crypto industry has come from its speculative, fringe origins. With growing interest from asset managers, new exchange-traded products and broader adoption among retail and corporate users, digital assets are increasingly shaping conversations in global finance. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. "The Genius Act will go down in history as a law that served as a foundational step in mainstreaming of crypto as an asset class," said Chris Perkins, president, CoinFund. Corporate treasury allocations to bitcoin are also gaining pace, with a growing number of public companies adding the token to their balance sheets as a long-term store of value. The sector was last trading at a combined market value of $3.92 trillion, as bitcoin — the world's largest cryptocurrency — fell 1.8%. Bitcoin crossed the $120,000 mark earlier this week, setting a record. Brokerage Bernstein forecast it could climb to $200,000 by end-2025. Ether, the second-biggest crypto token, was last up 4.5%. It has more than doubled over the past three months. The crypto rally also powered gains in linked equities, with Coinbase (COIN.O) , opens new tab and Robinhood (HOOD.O) , opens new tab climbing to all-time highs on Friday. Shares of the crypto exchange were last up 1%, while the retail trading platform, which also supports crypto trades, gained 3%. Ether-focused stocks also saw broad gains. https://www.reuters.com/business/crypto-sector-breaches-4-trillion-market-value-during-pivotal-week-2025-07-18/

2025-07-18 20:01

Exxon loses arbitration to block Chevron's $55 bln Hess deal Chevron wins prized Guyana asset but at a high integration, legal cost Hess deal key to Chevron's long-term growth strategy Arbitration overhang kept investors on sidelines, analysts say July 18 (Reuters) - Exxon Mobil (XOM.N) , opens new tab has lost its arbitration challenge to block Chevron's (CVX.N) , opens new tab $55 billion Hess (HES.N) , opens new tab acquisition deal, but the top U.S. oil producer managed to delay the tie-up by over a year, costing its rival billions in lost Guyana oil revenue and slowing integration. Chevron's deal, first announced in October 2023, closed on Friday after a drawn-out dispute over Hess's 30% stake in Guyana's Stabroek block, the most attractive asset in its portfolio. The offshore oilfield holds more than 11 billion barrels of oil and is one of the fastest-growing oil production regions in the world. Sign up here. The No. 2 U.S. oil producer had originally targeted a mid-2024 close for the deal. Exxon, which operates the Guyana project and holds a 45% stake along with Hess and CNOOC (600938.SS) , opens new tab , challenged the merger through arbitration, citing a right of first refusal on Hess's Guyana assets. "The delay kept roughly 180,000 barrels per day (bpd) of Hess oil, about $6-7 billion in gross sales and $3 billion in profit, just from Guyana's Stabroek Block sailing past Chevron's till in 2024, because those barrels kept flowing to Hess while the lawyers argued," said Michael Ashley Schulman, chief investment officer at Running Point Capital. Chevron's deal was part of the biggest wave of consolidation in the oil industry for over 20 years and was a strategic counter to Exxon's own blockbuster deal and growing position in the Permian. For Chevron CEO Michael Wirth, acquiring Hess and its stake in Guyana was central to his strategy for the company's future growth. That strategy had been in limbo during the arbitration, turning what was initially expected to be a clean, timely win for Chevron into a high-stakes challenge for Wirth, who had already lost one major deal. He abandoned his takeover bid for Anadarko Petroleum in 2019 after being outmanoeuvred by Occidental Petroleum's (OXY.N) , opens new tab higher offer. OVERHANG ON CHEVRON'S STOCK With the Hess deal now closed, Chevron said it expects to realize $1 billion in run-rate cost synergies by the end of 2025 and will cut jobs due to overlapping roles between the two companies. Chevron is in the midst of laying off up to 20% of its global workforce, has faced a rise in safety issues, and its operations in Venezuela have been caught in a geopolitical crossfire. "For Chevron, this favorable ruling helps the major avoid other time-consuming (and likely costly) approaches for inorganic growth," said Atul Raina, vice president at Rystad Energy. "Had the ruling gone in favor of Exxon Mobil and CNOOC, Chevron would then have had to look for growth opportunities elsewhere ... this would have most likely translated into Chevron paying large premiums for buying premier U.S. shale assets that move the needle for the major," Raina added. During the arbitration, Chevron had prepared for the integration of Hess business, purchasing $2.2 billion in Hess shares and issuing $5.5 billion in long-term debt, according to Jefferies analysts. The arbitration itself was also costly, Schulman said. "Add an estimated $50-100 million in arbitration fees and white-shoe billable hours, and you start to see why Mike Wirth's victory lap feels a bit like winning the Indy 500 on three tires," said Schulman. By contrast, Exxon's own $60 billion acquisition of Pioneer Natural Resources, announced the same month as Chevron's deal, closed by May 2024. That deal gave Exxon a bigger position as a shale producer in the top U.S. oilfield, the Permian basin. Since announcing the Hess deal, Chevron shares have declined about 9%. Exxon's stock is up just over 1% since unveiling its Pioneer acquisition, a divergence reflecting investor sentiment around timing and execution. Some of that gap was closed on Friday as Chevron stock fell nearly 1% while Exxon fell nearly 3%. RBC analyst Biraj Borkhataria said the arbitration had clearly been an overhang on Chevron's stock, with many investors choosing to stay on the sidelines during the drawn-out process. "Investor sentiment has shifted multiple times over the last eighteen months, usually based on either Exxon or Chevron commentary at industry conferences, both expressing how 'confident' they were of winning," Borkhataria said in a note. https://www.reuters.com/business/energy/chevron-wins-exxon-case-loses-time-oil-billions-2025-07-18/

2025-07-18 19:40

Law requires tokens to be backed by liquid assets Measure is first major crypto law enacted in US Some crypto firms look to gain bank licenses Critics say loopholes in law risk making US haven for criminals WASHINGTON, July 18 (Reuters) - U.S. President Donald Trump on Friday signed a law to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money. The bill, dubbed the GENIUS Act, passed in the House of Representatives by a vote of 308 to 122, with support from nearly half the Democratic members and most Republicans. It had earlier been approved by the Senate. Sign up here. The law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos. "This signing is a massive validation of your hard work and pioneering spirit," said Trump at a signing event that included dozens of government officials, crypto executives and lawmakers. "It's good for the dollar and it's good for the country." Treasury Secretary Scott Bessent, in a statement, said the new technology would buttress the dollar’s status as the global reserve currency, expand access to the dollar economy and boost demand for U.S. Treasuries, which back stablecoins. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly. The new law requires stablecoins to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves monthly. Crypto companies and executives argue such legislation will enhance stablecoins' credibility and make banks, retailers and consumers more willing to use them to transfer funds instantly. The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion, could grow to $2 trillion by 2028 under the new law, Standard Chartered bank estimated earlier this year. The law's passage culminates a long lobbying effort by the industry, which donated more than $245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. The Republican president, who has launched his own coin, thanked executives for their support during the 2024 presidential campaign, saying, "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that's what we've done." Democrats and critics have said the law should have blocked big tech companies from issuing their own stablecoins, which could increase the clout of an already powerful sector, contained stronger anti-money laundering protections and prohibited foreign stablecoin issuers. "By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes to exploit," said Scott Greytak, deputy executive director of Transparency International U.S. COULD BOOST DEMAND FOR T-BILLS Big U.S. banks are internally debating an expansion into cryptocurrencies as regulators give stronger backing to digital assets, but banks' initial steps will focus on pilot programs, partnerships or limited crypto trading, Reuters reported in May. Several crypto firms including Circle (CRCL.N) , opens new tab and Ripple are seeking banking licenses, which would cut costs by bypassing intermediary banks. Backers of the bill have said it could potentially give rise to a new source of demand for short-term U.S. government debt, because stablecoin issuers will have to purchase more of the debt to back their assets. Trump has sought to broadly overhaul U.S. cryptocurrency policies, signing an executive order in March establishing a strategic bitcoin reserve. The president launched a meme coin called $TRUMP in January and partly owns crypto company World Liberty Financial. https://www.reuters.com/legal/government/trump-signs-stablecoin-law-crypto-industry-aims-mainstream-adoption-2025-07-18/

2025-07-18 19:37

July 18 (Reuters) - Chicago Federal Reserve Bank President Austan Goolsbee on Friday said the constant "drip drip" of new tariff announcements undercuts the idea that tariffs have only a one-time impact on prices, and without clarity on where they will end up the central bank will need more time to decide if rate cuts are appropriate. "We need some resolution that we can count on before we can fully understand what the impact of this is," Goolsbee said in an interview with Yahoo Finance. "Anything that makes it harder to figure out if we are on a path back to 2% inflation, anything like that is extending the timetable of when the rate cuts can happen." Sign up here. https://www.reuters.com/business/feds-goolsbee-new-tariff-announcements-may-delay-rate-cuts-2025-07-18/

2025-07-18 19:24

Dollar drops, but on track for weekly gain Focus on Fed policy as Trump attacks Powell Yen dips against dollar ahead of Japanese elections NEW YORK, July 18 (Reuters) - The U.S. dollar slipped against the euro on Friday but held on to weekly gains, as investors weighed expected Federal Reserve policy amid signs that tariffs may be starting to increase some inflation pressures and as U.S. President Donald Trumpcontinued to criticise Chair Jerome Powell. Data on Tuesday showed that consumer prices rose in June, though the increase was seen as moderate. Wednesday’s producer price inflation report showed that prices were steady last month. Sign up here. Powell has said he expects inflation to rise this summer as a result of Trump’s tariff policies. His comments have pushed out expectations of when the U.S. central bank is likely to cut interest rates. But the labor market is showing signs of weakness even as headline job gains and the unemployment rate remain relatively solid. “We're waiting on the tariffs to become real and not just a negotiating ploy and waiting on the labor market to reveal itself,” said Lou Brien, strategist at DRW Trading in Chicago. “Layoffs are at a lower level than they were pre-pandemic, but the hiring is terrible. And if, all of a sudden, the layoffs come up, we're going to get a significant increase in the unemployment rate very quickly,” Brien said. Fed governor Chris Waller said on Friday that he favors a rate cut at the July meeting because he feels tariffs are likely to have a limited impact on inflation. Waller added that underlying data "are not indicating a super healthy private sector labor market," and the Fed should "get ahead" of a possible hiring slowdown. Powell is facing almost daily criticism from Trump over the Fed's reluctance to cut rates. The dollar tumbled on Wednesday on reports that Trump was planning to fire the Fed Chair, but rebounded after Trump denied the reports. Powell's term will end in May. Chicago Fed President Austan Goolsbee said he is a "little wary" about signs in the June consumer price index that tariffs are pushing up goods inflation, but still believes the U.S. economy is in a good place and the Fed's policy rate can come down a "fair bit" over the next 12 months. Fed funds futures traders are pricing in 46 basis points of cuts by year-end, implying that two 25 basis point cuts are seen as most likely, with the first coming in September. The dollar index was roughly flat on the day at 98.49, and is on track for a 0.65% weekly gain. The euro was last up 0.22% at $1.1621 but is headed for a weekly drop of 0.59%. The euro pared gains after the Financial Times reported that Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union. Sterling was flat at $1.3411 and is heading for a weekly decline of 0.64%. The Japanese yen was slightly lower against the greenback heading into Sunday's upper house election, in which Japan's ruling party looks vulnerable. The dollar gained 0.1% to 148.75 yen and is on track for a weekly gain of 0.93%. Polls suggest Japan's ruling coalition is at risk of losing its majority, which would stir policy uncertainty at home and complicate tariff negotiations with the United States. U.S. Treasury Secretary Scott Bessent told Japanese Prime Minister Shigeru Ishiba that their countries can reach a "good agreement" on tariffs, Ishiba said on Friday after meeting Bessent in Tokyo. In cryptocurrencies, bitcoin fell 1.51% to $117,680, holding below a record $123,153 reached on Monday. The U.S. House of Representatives on Thursday passed a bill to create a regulatory framework for U.S.-dollar-pegged cryptocurrency tokens known as stablecoins, sending the bill to Trump, who is expected to sign it into law. https://www.reuters.com/world/africa/dollar-slips-against-euro-maintains-weekly-gains-2025-07-18/

2025-07-18 19:19

US consumer sentiment up, but homebuilding drops US Trump seeking minimum tariffs on EU EU to stop importing fuels from Russia Chevron closes Hess acquisition after arbitration win NEW YORK, July 18 (Reuters) - Crude oil futures were little changed on Friday on mixed U.S. economic and tariff news and worries about oil supplies following the European Union's latest sanctions against Russia for its war in Ukraine. Brent crude futures fell 24 cents, or 0.3%, to settle at $69.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.3%, to end at $67.34. Sign up here. That put both crude benchmarks down about 2% for the week. In the United States, single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter. In another report, however, U.S. consumer sentiment improved in July, while inflation expectations continued to decline. Lower inflation should make it easier for the U.S. Federal Reserve to reduce interest rates, which could cut consumers' borrowing costs and boost economic growth and oil demand. Separately, U.S. President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached. "Currently envisioned reciprocal tariffs, coupled with announced sectoral levies, could push the U.S. effective tariff rate above 25%, surpassing 1930s peaks ... In coming months, the tariffs should increasingly be manifest in inflation," analysts at U.S. bank Citigroup's Citi Research said in a note. Rising inflation can raise prices for consumers and weaken economic growth and oil demand. EU SANCTIONS In Europe, the EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine, which includes measures aimed at dealing further blows to Russia's oil and energy industries. "New sanctions on Russian oil from the U.S. and Europe this week were met by a muted market reaction," analysts at Capital Economics said in a note. "This is a reflection of investors doubting President Trump will follow through with his threats, and a belief that new European sanctions will be no more effective than previous attempts." The EU will also no longer import any petroleum products made from Russian crude, though the ban will not apply to imports from Norway, Britain, the U.S., Canada and Switzerland, EU diplomats said. EU foreign policy chief Kaja Kallas also said on X that the EU has designated the largest Rosneft (ROSN.MM) , opens new tab oil refinery in India as part of the measures. India is the biggest importer of Russian crude while Turkey is the third-biggest, Kpler data shows. "This shows the market fears the loss of diesel supply into Europe, as India had been a source of barrels," said Rystad Energy's vice president of oil markets, Janiv Shah. In other news, U.S. oil major Chevron (CVX.N) , opens new tab closed its $55 billion acquisition of U.S. energy firm Hess (HES.N) , opens new tab on Friday after winning a landmark legal battle against larger U.S. oil major rival Exxon Mobil (XOM.N) , opens new tab to gain access to the largest oil discovery in decades off Guyana. https://www.reuters.com/business/energy/oil-steadies-mixed-us-economic-tariff-news-offset-new-russia-sanctions-2025-07-18/