Weekly Recap: SEC Disaster, FTX Saga & FBI Showdown

This week’s weekly recap of finance and crypto is full of twists. From the SEC clashing with major crypto firms to inflation data and global economic shifts, we cover it all, including the FTX saga and key government decisions.

Government and Finance

Warm September CPI, PPI Inflation Data

Source | CGTN

According to CGTN, the PPI data offered mixed results. However, it eased concerns about reheating inflation from the Consumer Price Index (CPI). Chris Larkin, managing director at ETrade, commented, “Today’s PPI was a mixed bag. Still, it should help ease immediate concerns.”

The FEDWatch data reflects this sentiment. The odds of a 50-point rate cut, which is positive for markets, remain at 85%.

  • CPI Inflation: The consumer price index unexpectedly rose by 0.2% in September, surpassing the forecasted 0.1%. However, the 12-month CPI inflation rate fell to 2.4%, below the previous 2.5%.
  • Core CPI: Stripping out food and energy, the core CPI rose 0.3%, matching predictions. However, the 12-month core CPI inflation rate slightly increased to 3.3%, up from 3.2%.

PPI Inflation

Inflation for US producers continued to slow in September. This trend adds hope that consumer prices won’t rise sharply. The Producer Price Index (PPI) rose 1.8% for the year ending in September, down from the 1.9% gain in August, according to Bureau of Labor Statistics data.

Crypto.com – SEC Showdown

Source | Investopedia

Crypto.com has filed a lawsuit against the SEC following a Wells Notice, indicating potential charges. CEO Kris Marszalek criticized the SEC’s approach, calling it “regulation by enforcement,” which he says has harmed over 50 million American crypto holders (Investopedia).

SEC Commissioner Criticizes Approach

Source | GETTY

SEC Commissioner Mark Uyeda stated that the agency’s handling of cryptocurrency has been disastrous for the entire industry, according to an interview on Mornings with Maria.

Robinhood Legal Officer Might Lead the SEC

Source | New York Post

Dan Gallagher, the current Chief Legal Officer at Robinhood, could become SEC Chairman if Donald Trump wins the 2024 election, as reported by the New York Post.

FBI Creates Ethereum Token for Fraud Investigation

Source | Yahoo Finance

As part of a price manipulation probe, the FBI secretly created an Ethereum-based token, NexFundAI. This led to charges against nine individuals for allegedly boosting crypto asset prices (Yahoo Finance).

US Supreme Court Rejects Silk Road Bitcoin Case

Source | The Independent

The US Supreme Court declined to hear a case regarding the ownership of 69,370 Bitcoin seized from the dark web marketplace Silk Road. This decision could allow the government to sell the Bitcoin, currently valued at $4.38 billion (CoinTelegraph).

China’s $70 Billion Boost for Stock Market Liquidity

Source | bna.bh

China’s central bank introduced a new 500 billion yuan swap tool to promote healthy capital market growth, essentially providing a relief package (bna.bh).

South Korea Considers Approving Bitcoin ETFs

Source | Forbes

South Korea’s Financial Services Commission (FSC) is considering the approval of spot crypto exchange-traded funds (ETFs) (Forbes). According to CryptoQuant CEO Ki Young Ju, this move could reduce the “Kimchi premium,” a phenomenon where crypto prices in South Korea average higher than in other markets.

Other Highlights

  • South Korea: Crypto in Divorce Settlements
    Couples in South Korea can now divide cryptocurrency during divorce proceedings, according to local law experts.
  • Justin Sun Elected as Liberland’s Prime Minister
    Tron ($TRX) founder Justin Sun has been elected as Prime Minister of Liberland, a micronation between Croatia and Serbia.
  • FTX Refunds in Progress
    Creditors of FTX are set to receive up to $16.5 billion in refunds under a bankruptcy plan approved by the US (Prestmit).

Conclusion

This week was full of significant developments in finance and crypto. From inflation concerns to global economic policies and regulatory challenges, staying updated is crucial. Always remember to do your own research and rely on trusted sources like blog.millionero.com.

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