EddieJayonCrypto
19 Sep 22
• I am expecting a 75 basis point hike following the FOMC meeting starting tomorrow, ending Wednesday• The SEC is making it hard for BlackRock, JPMorgan, Goldman Sachs, and U.S. Bancorp to get into crypto lending• The Chamber of Digital Commerce files an amicus curiae in the case of SEC v. Ripple an...
• I am expecting a 75 basis point hike following the FOMC meeting starting tomorrow, ending Wednesday• The SEC is making it hard for BlackRock, JPMorgan, Goldman Sachs, and U.S. Bancorp to get into crypto lending• The Chamber of Digital Commerce files an amicus curiae in the case of SEC v. Ripple and it is not what you think• Ripple and the SEC have both requested a swift judgement in the case• FTX just got licensed in the Europe Union to offer the full slate of exchange services in the regionThis is a major week for the stock market and for the Cryptoverse. Looking at the numbers this morning, the Cryptoverse continues it steep nosedive. Here is what is on my mind today.1. The FOMC meeting starts tomorrow and will end Wednesday. The meeting will be followed by a press conference where we can expect 2 major things. The first will be the announcement of the Fed rate hike. I am expecting 75 basis points as I think 100 would shock the market and cause an instant recession. The second thing we can expect Chairman Powell's review of the current data and his outlook for the future. 2. Back in March, the SEC announced a set of guidelines that has since wrecked the defi space for some major players, including BlackRock, JPMorgan, Goldman Sachs, and U.S. Bancorp to name a few. One guideline basically says those entities must treat the holdings of their clients as their own. This is a financial responsibility, not necessarily on of kindness. It means they have to carry the assets on their balance sheet as a liabilities and cause them to hold cash to back those assets. As you might imagine, this creates a major problem and goes beyond the normal custodial regulations they thought they would have to abide by. Prepare yourself. This is going to be a battle for sure. 3. In more SEC news, The Chamber of Digital Commerce has filed an amicus curiae brief stating although they cannot determine if Ethereum is a security, regulators need to be clear and consistent with their legal frameworks. This is the only message delivered in the brief. They did not touch on what side they fall on in the SEC V. Ripple case. This is actually a very smart move as they want the focus to be the lack of clarity and the lack of consistency and not join the fray between the government and Ripple. This in and of itself is a huge message. 4. In case you missed it Ripple and the SEC have both requested a swift judgement in the agency's case against the company. The filing happened on September 13th and sent XRP on an upward tear it has since given back. A quick pop and drop. I was not expecting this at all. So it came as a bit of a drop. The coin reach close to $0.40 and has since fallen back down to about $0.35. 5. Remember when I told you that FTX is keen on increasing the breadth and depth of their products and services? Well they just announced this past Thursday another step in that overall strategy. They have secured a European Investment Firm license. This is a huge deal as they are the only crypto exchange, for now, that can provide a full suite of exchange services under the Markets in Financial Instruments (MiFID) license. They have achieved an equivalent license in Cyprus. FTX Currently enjoys privileges across the European Union, Norway, Lichtenstein, Iceland and Cyprus. They have hit a snag in the U.K. with the Financial Conduct Authority saying FTX is currently operating without authorization. I am sure this is being addressed.