2023-10-20 08:42

Copyrighted Image by: Reuters. The U.S. Securities and Exchange Commission (SEC) has dropped its charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen on Friday. The allegations were centered around XRP being unregistered securities, marking the end of a three-year legal battle that began in late 2020. Ripple's top executives labeled the SEC as a "rogue regulator" with a "political agenda." Garlinghouse criticized the SEC for targeting their US-based "regulated business," which provides "blockchain infrastructure" for "cross-border payments," instead of focusing on "offshore exchanges" engaged in illegal activities. Due to the SEC's antagonism, Ripple had to move approximately 90% of its business and most of its Q3 2023 hirings offshore. Larsen viewed the dismissal as a victory against what he called a "troubling attempt" to suppress crypto in America. He suggested that "politically connected special interests" influenced the lawsuit. The SEC has also laid charges against Coinbase (NASDAQ:COIN) and Binance; Coinbase for listing unregistered securities and operating an "illegal exchange," while Binance was accused of serious violations like co-mingling customer funds. On Thursday, the SEC proposed a case dismissal to a federal judge concerning Ripple's top executives, planning to negotiate suitable remedies for violations associated with Ripple's unregistered institutional XRP sales. Ripple had been accused of misleading investors with over $1 billion in sales, but the verdict determined these weren't securities offerings. This decision caused a 6% increase in the value of XRP. https://www.investing.com/news/cryptocurrency-news/sec-drops-charges-against-ripple-executives-concluding-threeyear-legal-battle-93CH-3203844

2023-10-20 07:57

Copyrighted Image by: Reuters Analysts from JPMorgan and Bloomberg Intelligence anticipate Wall Street's approval of a Bitcoin Exchange-Traded Fund (ETF) before January 10, 2024, despite the U.S. Securities and Exchange Commission's (SEC) ongoing concerns about market manipulation. On Friday, it was reported that these ETFs, which allow investors to gain exposure to cryptocurrencies by mirroring their value, have seen increased interest despite the SEC's reservations. The ProShares Bitcoin Strategy ETF, for instance, has not shown significant growth despite an initial $1 billion investment. According to InvestingPro Data, the ProShares Bitcoin Strategy ETF, also known as BITO, has a market cap of 914.16M USD. The ETF has seen a significant return over the last week, with a 7.86% increase, as per InvestingPro Tips. The dividend yield for BITO is projected to be 6.04% for the year 2023. The ETF's performance has been mixed over the past few months, with a 1-month total return of 6.79%, a 3-month total return of -4.59%, and a 6-month total return of -0.46%. The absence of a spot variant in the U.S. remains notable, even as the SEC has approved Bitcoin futures ETFs. Experts continue to argue for a spot Bitcoin ETF due to investor interest. Recent applications from major firms like BlackRock (NYSE:BLK) and Grayscale have sparked optimism in the market, despite previous rejections from the SEC. On Thursday, Gary Gensler, the chair of the SEC, discussed multiple Bitcoin ETF proposals currently under review by various divisions within the SEC during an interview with Bloomberg. He emphasized that around ten spot Bitcoin ETF applications are undergoing rigorous examination, following a time-tested process consistently employed by the SEC for decades. Gensler also highlighted Grayscale's attempt to transition its GBTC fund into a spot Bitcoin ETF following a court victory in August. This action was not contested by the SEC; Gensler clarified that this does not guarantee Grayscale's approval or influence other similar proposals' outcomes. The market's sensitivity to these developments was underscored by turbulence following a false report on BlackRock's Bitcoin ETF endorsement. Through his revelations, Gensler reiterated the SEC's commitment to its foundational procedures and ensuring an unbiased evaluation of each application. InvestingPro Tips suggests that while BITO has seen a significant return over the past week, it suffers from weak gross profit margins and its valuation implies a poor free cash flow yield. For more insights like these, investors can check out the InvestingPro product which includes additional tips. https://www.investing.com/news/cryptocurrency-news/bitcoin-etf-approval-likely-before-january-10-say-analysts-93CH-3203788

2023-10-20 07:56

Federal Reserve Governor Michael Barr expressed concerns on Friday about the lack of robust federal oversight on stablecoins, a sentiment echoed by major industry players such as PayPal (NASDAQ:PYPL) and Visa (NYSE:V). Jón Egilsson, co-founder of Monerium and former chairman of the Icelandic Central Bank, also expressed similar apprehensions. These concerns come amidst the rapid growth of the trillion-dollar U.S. stablecoin industry. The Federal Reserve plans to enhance its oversight of cryptocurrencies in response to the regulatory ambiguity surrounding stablecoins. These digital assets, which serve as tools bypassing traditional finance for secure and efficient transactions, necessitate stringent regulation to ensure consumer protection and reliable transactions. In contrast to the U.S., Europe has in place comprehensive Markets in Crypto Assets (MiCA) laws specifically addressing stablecoins. This stark regulatory discrepancy could potentially trigger a movement of the USD stablecoin industry offshore towards Europe, following historical patterns of industries relocating due to unclear regulations. Stablecoins are digital currencies that are typically pegged to a reserve asset like the U.S. dollar or gold to maintain a stable value. They have gained popularity as they offer a way to leverage the benefits of blockchain technology for transactions while minimizing volatility typically associated with cryptocurrencies such as Bitcoin. As this industry continues to evolve rapidly, it is becoming increasingly clear that robust regulatory frameworks will be crucial in ensuring its stability and longevity. However, if these frameworks are not established in a timely manner in the U.S., it could risk losing its foothold in this burgeoning industry to regions with more comprehensive regulations, such as Europe. https://www.investing.com/news/cryptocurrency-news/stablecoin-oversight-concerns-spark-potential-industry-shift-to-europe-93CH-3203787

2023-10-20 06:57

Copyrighted Image by: Reuters. On Friday, Binance, one of the world's largest cryptocurrency exchanges, relaunched Bitcoin SV (BSV) through a USDⓈ-M BSV Perpetual Contract with 50x leverage. The move led to a 30% surge in BSV's price and over $500,000 in short position liquidations, according to data from Coinglass. This development follows a period of turbulence dating back to April 15, 2019, when Binance delisted BSV. The decision was made amid a heated dispute between Binance CEO Changpeng Zhao and BSV creator Craig Wright. The contention revolved around Wright's claim to be Satoshi Nakamoto, the pseudonymous inventor of Bitcoin. This claim led to alleged attacks on Twitter users who questioned Wright's identity. Despite the relaunch of BSV on the platform, Binance has not reinstated the BSV spot trading pairs. Following the surge triggered by the relaunch, the value of BSV exceeded $54. The broader cryptocurrency market is currently sending mixed signals after a week of subdued price movements. These movements were briefly interrupted by spikes attributed to false reports about Bitcoin ETF approval. https://www.investing.com/news/cryptocurrency-news/binance-relaunches-bitcoin-sv-triggers-30-price-surge-93CH-3203721

2023-10-20 05:16

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose to a three-month high on Friday amid persistent safe haven demand on concerns over the Israel-Hamas war, while somewhat mixed signals on U.S. interest rates also stalled a rally in the dollar and Treasury yields. The yellow metal was set for a second straight week of strong gains, with gold futures coming close to the $2,000 an ounce level as fears of a broader conflict in the Middle East fueled demand for traditional safe havens. Gold was encouraged by some overnight weakness in the dollar and Treasury yields, as Federal Reserve Chair Jerome Powell said that the recent spike in yields was tightening financial conditions, potentially lessening the need for more action by the Fed. While Powell still left the door open for at least one more hike this year, markets took his comments as a sign that the Fed was done with raising interest rates. This spurred some profit taking in the dollar, while yields also came off multi-year highs, although the 10-year rate still remained close to the 5% level. Still, softer yields and a weaker dollar helped push up gold prices, as did increased safe haven demand amid uncertainty over the Israel-Hamas war. Markets are watching for a planned ground assault on the Gaza strip by Israeli forces, which could mark an escalation in the conflict. Spot gold rose 0.1% to $1,977.14 an ounce, while gold futures expiring in December rose 0.4% to $1,989.05 an ounce by 00:53 ET (04:53 GMT). Both instruments were up nearly 2.5% this week, after surging over 5% in the prior week. But with Powell still leaving the door open for more rate hikes, a rally in the yellow metal could be limited, especially if more economic indicators point to resilience in the U.S. economy and sticky inflation. Curbing inflation is still the Fed’s main goal, and while inflation has retreated substantially over the past year, it still remains well above the central bank’s 2% target. U.S. rates are set to remain higher for longer, potentially above 5% until at least end-2024, heralding continued pressure on non-yielding assets such as gold. Copper weak as China jitters persist Among industrial metals, copper prices fell further on Friday and were down for a third straight week amid persistent concerns over major importer China. Copper futures fell 0.5% to $3.5680 a pound, and were down 0.1% this week. While better-than-expected gross domestic product data from China offered some support to copper this week, the trend was largely offset by persistent concerns over China’s property sector, especially amid signs that developer Country Garden Holdings (HK:2007) had defaulted on its offshore bonds. China’s central bank also kept its loan prime rate at record lows on Friday, as it seeks to strike a balance between fostering economic growth and stemming weakness in the yuan. https://www.investing.com/news/commodities-news/gold-prices-at-3mth-high-on-middle-east-tensions-mixed-fed-cues-3203685

2023-10-20 05:16

Copyrighted Image by: Reuters. Investing.com - Gold retained its shine across the safe haven world on Friday, revisiting $2,000 the first time since August and eventually setting a three-month high, as contagion worries from the Middle East’s latest war and the Federal Reserve’s hesitancy to raise US interest rates anymore sent a horde of investors toward the yellow metal. “Gold's safe haven status has been questioned on a number of occasions over recent years but times like this highlight that in times of significant uncertainty, traders look for assets with a track record,” said Craig Erlam, analyst at online trading platform OANDA. “Of course, the circumstances are quite favorable for gold as US yields are rapidly rising at the same time, reducing Treasuries' appeal in the short-term. But the combination of geopolitical and economic uncertainty, both of which could have implications for inflation and interest rates, is increasing gold's appeal, for now.” Gold’s most-active futures contract on New York’s Comex, December, settled up $13.90, or 0.7%, at $1,994.40 per ounce. After an uninterrupted four-day rally, the benchmark gold futures contract finished the week up $52.90, or 2.7% — adding to the previous week’s run up of 5.2%. The spot price of gold, more closely watched by some traders than futures, was at $1,981.49 by 15:30 ET (19:30 GMT), up $7.08, or 0.4%, after a session high of $1,997.20. The spot price, which reflects real-time trades in bullion, was up 2.4% on the week, adding to the previous week’s gain of 5.4%. Gold’s $2,000 charge came after the US Dollar Index and bond yields — marked by the return on the U.S. 10-year Treasury note — both eased from their highs of this week, allowing the yellow metal to regain its mantle as the preferred safe haven. (Ambar Warrick contributed to this item) https://www.investing.com/news/commodities-news/gold-prices-at-3mth-high-on-middle-east-tensions-mixed-fed-cues-3203685