2025-03-21 19:20
March 21 (Reuters) - (This March 21 story has been corrected to fix the crypto firm’s name to, "a16z crypto," from "Andreessen Horowitz's crypto arm, a16z," in paragraph 2) The U.S. Securities and Exchange Commission's crypto task force held its first public meeting with experts on Friday, focusing on how securities laws might apply to digital assets as the Trump administration looks to overhaul cryptocurrency regulations. Sign up here. Among the participants of the roundtable were John Reed Stark, former chief of the SEC's Office of Internet Enforcement; Miles Jennings, the general counsel for a16z crypto; and former SEC Commissioner Troy Paredes. Republican SEC Commissioner Hester Peirce is leading the task force, which is charged with developing rules and guidance for crypto. "Spring signifies new beginnings and we have a new beginning here, a restart of the commission's approach to crypto regulation," said Peirce. The crypto industry has long clashed with regulators over how federal securities laws translate to digital assets, with many arguing that crypto tokens are more akin to commodities. Tokens classified as securities would require firms to register with the SEC and provide certain disclosures to investors. President Donald Trump, who campaigned on promises to be a "crypto president," has pledged to reverse an industry crackdown under former President Joe Biden's SEC, which sued multiple crypto companies, including Coinbase and Kraken, alleging they had flouted its rules. The SEC's new leadership has agreed to withdraw or pause many of those cases. The task force on Friday debated whether crypto tokens require a new, separate regulatory framework, different from how the SEC oversees securities such as equities. Jennings urged the SEC to take a "technology-neutral" approach, “looking at what differentiates a system like ethereum from ownership of equity in Apple (AAPL.O) , opens new tab." Some, including Democratic SEC Commissioner Caroline Crenshaw, expressed concern that the regulator would loosen rules for cryptocurrencies by allowing them to operate under a distinct regime. “Modifying the law to facilitate the success of a chosen product category is fraught with risk," said Crenshaw. "Risk not only of weakening regulatory protections for that category, but of creating the negative domino effect on other areas of the market protected by the same laws.” The task force's first roundtable comes as Trump has sought to broadly overhaul policies toward cryptocurrency. Earlier this month, Trump signed an executive order to establish a strategic reserve of cryptocurrencies and held a summit for industry leaders at the White House. https://www.reuters.com/world/us/us-sec-holds-crypto-task-force-roundtable-trump-plans-regulatory-revamp-2025-03-21/
2025-03-21 19:15
Canada cancels proposed capital gains tax increase Carney aims to boost investment and improve Liberal Party polling Scrapping tax measure may widen government deficit OTTAWA, March 21 (Reuters) - Canada will cancel a proposed tax increase in the capital gains inclusion rate, Prime Minister Mark Carney's office said on Friday, bringing an end to a tax measure that had been widely criticized by industry. The federal government will also keep the increase in the lifetime capital gains exemption limit to C$1.25 million ($871,930.80) on sale of small business shares and farming and fishing property, Carney's office said in a statement. Sign up here. Canada's newly elected prime minister has been getting rid of unpopular measures that were partly responsible for tanking the Liberal Party's polling numbers under the leadership of his predecessor, Justin Trudeau. Polling numbers have improved and show that the party is either ahead or neck and neck with the main opposition Conservatives. Carney is expected to call elections soon. "Cancelling the hike in capital gains tax will catalyze investment across our communities and incentivize builders, innovators, and entrepreneurs to grow their businesses in Canada," Carney said in a statement. The government had proposed last April to increase the proportion of capital gains subject to tax to two-thirds from half for businesses and individuals with capital gains above C$250,000 ($174,605). The measure, which was supposed to have taken effect on June 25 of last year, was not officially implemented through an act of Parliament. The proposed changes were highly contested and opposed by businesses, economists and opposition leaders, who warned that the measures could chase away investors from the country. However, the scrapping of the tax measure could drive a huge hole in government tax revenues and expand its deficit, which overshot by C$20 billion for the fiscal year 2023/24 despite the government's promises. The government had expected the tax to raise close to C$19.4 billion over five years starting from 2024-25, and had planned to use the revenue in part to build more affordable housing. ($1 = 1.4336 Canadian dollars) https://www.reuters.com/world/americas/canada-pm-carney-cancels-proposed-capital-gains-tax-increase-2025-03-21/
2025-03-21 19:13
US gas output on track to hit monthly record in March US LNG export feedgas set to hit monthly record in March US gas inventories on track for unusual build in March March 21 (Reuters) - U.S. natural gas futures held near a three-week low on Friday on record output and forecasts for milder weather and lower heating demand than previously expected through early April. Front-month gas futures for April delivery on the New York Mercantile Exchange rose 0.5 cent, or 0.1%, to settle at $3.980 per million British thermal units (mmBtu). On Thursday, the contract closed at its lowest since February 28. Sign up here. For the week, the contract was down about 3%. Low gas demand expected in coming weeks should allow utilities to keep adding fuel to storage. Some analysts say gas stockpiles are on track to increase in March for the first time since 2012 and only the second time in history. So far, however, gas stockpiles remain around 8% below normal levels for this time of year after extremely cold weather in January and February forced energy firms to pull large amounts of gas out of storage, including record amounts in January. SUPPLY AND DEMAND Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 105.9 billion cubic feet per day (bcfd) so far in March, up from a record 105.1 bcfd in February. Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through April 5. LSEG forecast average gas demand in the Lower 48, including exports, will rise from 106.8 bcfd this week to 108.0 bcfd next week before sliding to 106.1 bcfd in two weeks. The forecasts for this week and next week were similar to LSEG's outlook on Thursday. The amount of gas flowing to the eight big operating U.S. LNG export plants rose to an average of 15.7 bcfd so far in March, up from a record 15.6 bcfd in February, as new units at Venture Global's (VG.N) , opens new tab 3.2-bcfd Plaquemines LNG export plant, currently under construction in Louisiana, enter service. On a daily basis, LNG feedgas was on track to hit a preliminary record high of 16.6 bcfd on Friday, up from 16.0 bcfd on Thursday and an average of 15.9 bcfd over the prior seven days. If correct, that would top the current all-time daily high of 16.4 bcfd set on February 23. The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine. Gas traded around $14 per mmBtu at both the Dutch Title Transfer Facility (TTF) benchmark in Europe and the Japan Korea Marker (JKM) benchmark in Asia. https://www.reuters.com/business/energy/us-natgas-prices-edge-up-1-record-flows-lng-export-plants-2025-03-21/
2025-03-21 17:53
Canadian dollar slips 0.1% against the greenback Trades in a range of 1.4314 to 1.4373 Retail sales decline 0.6% in January Gap between 2- and 10-year yields hits 49.6 basis points TORONTO, March 21 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday as domestic data showed retail sales declining in the first two months of 2025 and tariff uncertainty lingered, but the currency was holding on to a modest weekly gain. The loonie was trading 0.1% lower at 1.4340 per U.S. dollar, or 69.74 U.S. cents, after trading in a range of 1.4314 to 1.4373. For the week, the currency was up 0.2%, which would be its third straight weekly gain. Sign up here. The Canadian dollar is likely to continue trading in a somewhat flat range for now "as markets await clarity" on proposed U.S. tariffs, Shaun Osborne, chief currency strategist at Scotiabank, said in a note. Wall Street clawed back some of its declines after U.S. President Donald Trump hinted there would be some flexibility regarding tariffs. Trump has promised tariffs on autos beginning April 2, alongside a more sweeping agenda of reciprocal tariffs. Earlier this month, he suspended until April 2 tariffs of 25% he had imposed on most goods from Canada. "In terms of the implications for Canada, misery loves company," Avery Shenfeld, chief economist at CIBC Capital Markets, said in a note. "Both the impacts on our exports to the US, as well as our odds of negotiating these tariffs down to a manageable size, would be improved by having many other US trading partners in the same boat." Canadian retail sales shrank 0.6% month-over-month in January after December's purchases were bumped up by a sales tax break which ended in the middle of last month. A preliminary estimate for February showed sales down 0.4%. The Canadian 10-year yield was trading nearly unchanged at 3.016%, while it was trading 1.3 basis points further above the 2-year yield at a spread of 49.6 basis points, its widest since February 2022. https://www.reuters.com/markets/currencies/canadian-dollar-clings-third-straight-weekly-gain-2025-03-21/
2025-03-21 16:36
MEXICO CITY, March 21 (Reuters) - Mexico's annual inflation likely slowed in the first half of March, according to a Reuters poll, supporting bets that the central bank will lower its benchmark interest rate again next week by half a percentage point. The median estimate from 10 participants forecast an annual rate of 3.76% for the general consumer price index in the first two weeks of the month, below the rate of 3.81% registered in the second half of February. (MXCPHI=ECI) , opens new tab Sign up here. Core inflation, which strips out especially volatile food and energy prices, is estimated to decrease to 3.56%, its lowest level since May 2020. (MXCPIC=ECI) , opens new tab "Given that inflation has stayed within the Bank of Mexico's target range over the last five fortnights, we continue to expect a 50 basis point (bp) cut at the March 27 meeting," the financial group Actinver said in an analysis note. Poll participants expect prices to have risen by 0.22% compared to the prior two-week period, while the core index is expected to increase by 0.24%. The official data will be released on Monday. (MXCPIF=ECI) , opens new tab, (MXCPIH=ECI) , opens new tab The central bank, which has an inflation target range of 3%, plus or minus one percentage point, accelerated its pace of cuts last month, lowering its benchmark interest rate by 50 basis points to 9.5%. The bank has stated that it will consider similar adjustments in the future if inflation keeps cooling and allows for it. Adding pressure on the monetary authority, the economy contracted by 0.6% at the end of 2024 and analysts do not rule out a new setback in the current first quarter due to looming trade tensions with the United States. https://www.reuters.com/world/americas/mexico-headline-inflation-likely-down-first-half-march-2025-03-21/
2025-03-21 16:15
March 21 (Reuters) - The U.S. Treasury on Friday lifted economic sanctions against Tornado Cash, a firm that makes cryptocurrency transactions harder to track, which the Biden administration had accused of helping launder more than $7 billion for North Korean and other cyber hackers. The Treasury Department's Office of Foreign Assets Control blacklisted Tornado Cash in 2022 after concluding it was helping launder the proceeds of cyber crimes, including more than $455 million stolen by Lazarus, a North Korean government-backed hacking group. Sign up here. Six users of Tornado Cash - a cryptocurrency "mixer" that obscures the origins and recipients of transactions - had filed a lawsuit to challenge the sanctions with the financial backing of the Coinbase (COIN.O) , opens new tab crypto exchange. In November, a U.S. appeals court found that OFAC had overstepped its authority, but the sanctions remained in place. In a statement, the Treasury said it had decided to repeal them after reviewing legal and policy issues raised by the use of sanctions within "evolving technology and legal environments". Still, the Treasury Department said it remained concerned about North Korea's "state-sponsored hacking and money laundering campaign," through which it has stolen digital assets to finance government activities. “Securing the digital asset industry from abuse by North Korea and other illicit actors is essential to establishing U.S. leadership and ensuring that the American people can benefit from financial innovation and inclusion," said Treasury Secretary Scott Bessent. President Donald Trump has sought to broadly overhaul U.S. cryptocurrency policies and this month signed an executive order to establish a strategic reserve of cryptocurrencies. He also held a summit for industry leaders at the White House. Two of the co-founders of Tornado Cash were charged in 2023 with facilitating more than $1 billion in money laundering, including for the Lazarus Group. One, Roman Storm, awaits trial and has denied engaging in criminal activity. Last May, one of Tornado Cash's developers, Alexey Pertsev, was sentenced to five years and four months in prison in the Netherlands for money laundering. https://www.reuters.com/business/finance/us-scraps-sanctions-tornado-cash-crypto-mixer-accused-laundering-north-korea-2025-03-21/
