The Federal Reserve cut interest rates by 50 basis points. Biden: Interest rates are expected to fall further

Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering the week's key news, mining information, project dynamics, technological progress and other industry dynamics. This article is one of the news weekly, taking you to a glance at the major events in the blockchain industry this week.

Headlines

▌Biden: Interest rates are expected to fall further

US President Biden said that the work of fighting inflation is not yet done; lowering borrowing costs will help economic growth; interest rates are expected to fall further; the Fed's rate cut indicates that the economy and recovery have entered a new stage; he respects the independence of the Federal Reserve and has not spoken to Federal Reserve Chairman Powell since entering the White House.

▌The Federal Reserve cut interest rates by 50 basis points, starting a rate cut cycle

Golden Finance reported that the Federal Reserve started a rate cut cycle, lowering the federal funds rate by 50 basis points to 4.75%-5.00%, the first rate cut since March 2020.

▌Changpeng Zhao will be released on September 29

According to the website of the U.S. Federal Bureau of Prisons, Binance co-founder Changpeng Zhao will be released from a U.S. prison on September 29. Zhao is currently serving a four-month sentence and was recently transferred to the Long Beach Residential Reentry Management (RRM) in Central California. RRM acts as a local federal prison liaison to assist prisoners who are about to be released by working with federal courts, the U.S. Marshals Service and local correctional institutions.

▌Musk deleted the assassination post in seconds, and the White House called it irresponsible

At a time when Republican presidential candidate Trump was suspected of being assassinated, American billionaire Musk posted on the social platform X, suggesting that no one tried to assassinate Democratic President Biden or Vice President Harris, and he felt strange about it. He later deleted the tweet. The US Secret Service said they had noticed Musk's post. The White House called Musk's post "irresponsible."  

Previously, it was reported that an X user asked Musk the question: "Why did they assassinate Trump?" Musk, who has expressed support for Trump and often comments on the US presidential election, replied: "Besides, no one tried to assassinate Biden/Kamala (Harris's name)." Musk also added a thinking face emoji to the post. The post was intercepted by X users and immediately sparked public outrage online. Musk later deleted the post, saying it was just a joke. Musk has more than 197 million followers on X.

Policy

▌The U.S. CFTC warns that election betting is about to explode and seeks court extension of suspension of Kalshi's political prediction market

The U.S. CFTC warned that "election betting is about to explode" and asked the appeals court to extend the suspension of Kalshi's political prediction market. "The district court's order was interpreted by Kalshi and others as an open season for election betting," the CFTC said in a filing on Saturday. Recently, Jia Cobb, a federal judge in the District of Columbia, issued a formal opinion, ruling that the CFTC had no authority to conduct a "public interest review" to prevent Kalshi from listing a political prediction market in the United States. Judge Cobb noted that Kalshi’s contracts were not about illegal activity or gambling, but about elections, neither of which falls under the CFTC’s jurisdiction. Congress has revoked the CFTC’s right to conduct public reviews of certain proposed futures contracts, saying that unless the contracts fall into specific categories such as terrorism or gambling, the CFTC noted that following the decision, Interactive Brokers, a heavyweight Wall Street broker, announced that it would offer contracts on the presidential election through a CFTC-regulated subsidiary. The agency said that unless the U.S. Court of Appeals for the District of Columbia extends its suspension of Kalshi’s contracts during the appeal, other CFTC-regulated exchanges will follow suit. “The surge in election betting on U.S. futures exchanges would harm the public interest,” the CFTC reiterated, citing harms including market manipulation and “undermining election integrity.”

▌Indian Court Bars Police from Freezing Entire Bank Accounts in Crypto Fraud Investigation

India's Madras High Court has ruled that police cannot freeze entire bank accounts in fraud investigations, only the amount in a bank account that is related to the fraud. The ruling follows a case in which an account was frozen in connection with a cryptocurrency investigation. Justice G. Jayachandran stressed that freezing entire accounts deprives individuals of their livelihood and financial stability. He noted that account holders are often unaware of why their accounts have been frozen, and by the time they find out, they have already suffered significant losses in their daily financial and business transactions.

▌Two former SEC staff members will attend a hearing on the politicization of crypto regulation

Golden Finance reported that the U.S. House of Representatives Digital Assets, Fintech, and Inclusion Subcommittee said in a notice on September 13 that they will hold a hearing entitled "Dazed and Confused: Breaking the SEC's Politicized Approach to Digital Assets". Witnesses at the September 18 hearing will include former SEC Commissioners Dan Gallagher and Michael Liftik, who served as a lawyer, senior advisor or acting head of enforcement during his approximately ten years at the SEC.

▌Kraken denies SEC allegations, saying digital assets are not securities

Golden Finance reported that the cryptocurrency exchange Kraken responded to the U.S. Securities and Exchange Commission's allegations that it violated federal securities laws. In a legal document filed on September 12, the cryptocurrency exchange denied the SEC's allegations, saying that the assets cited by the regulator did not meet the legal definition of securities. Kraken stated in the document that it did not violate "Sections 5, 15 (a) and 17A of the Securities Exchange Act of 1934" because the cited assets "are not securities or investment contracts."

▌Musk's spending to support Republican candidates is expected to have a major impact on who controls the House of Representatives

Musk's super PAC is spending $2.1 million to support Republican candidates in swing districts across the United States, which may help the world's richest man build a group of allies in the U.S. Congress. The committee's support may be the key to whether the Republican Party can retain its majority in the House of Representatives after the November election. A new federal filing details the latest spending, which is also the first major effort by the super PAC established by Musk earlier this year to influence elections other than the presidential race.

▌RBA: Wholesale CBDC will be given priority

Jones, assistant governor of the Reserve Bank of Australia, said that industry projects on central bank digital currencies (CBDCs) and tokenized commercial bank deposits at the wholesale level will be launched. Committed to a three-year digital currency research project. We will give priority to wholesale central bank digital currencies. Wholesale central bank digital currencies have greater economic benefits than retail central bank digital currencies. The launch of retail central bank digital currencies will be decided by the government and requires legislation.

▌Louisiana State Government Now Accepts Bitcoin Payments

According to Bitcoin Magazine, the Louisiana State Government now accepts Bitcoin payments.

▌Silvergate Capital Files for Chapter 11 Bankruptcy Protection in the U.S. Bankruptcy Court for the District of Delaware

Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, with assets estimated at between $100 million and $500 million and liabilities between $10 million and $50 million. The bankruptcy stems from the serious damage to the reputation of its subsidiary Silvergate Bank after liquidity problems and the collapse of crypto exchange FTX. Silvergate previously had close ties to the crypto industry, but the company faces major challenges due to regulatory scrutiny sparked by the FTX scandal. The U.S. Securities and Exchange Commission (SEC) accused Silvergate of assisting FTX in fraudulent trading and imposed heavy fines and restraining orders on its former executives. Silvergate has agreed to pay $63 million to settle charges with the SEC, the Federal Reserve, and California regulators.

▌German government shuts down 47 cryptocurrency exchanges suspected of being linked to illegal activities

German authorities have shut down 47 cryptocurrency exchanges suspected of being linked to criminal activities such as money laundering, saying that these exchanges deliberately failed to fulfill their obligations to conduct identity and background checks on customers. Some of these exchanges include Xchange cash, 60cek, Baksman, and some other smaller platforms. One of the exchanges has been active since 2012, while others were established only the year before.

▌Texas court dismisses Consensys' lawsuit against the US SEC

Consensys' lawsuit against the U.S. Securities and Exchange Commission (SEC) and SEC Chairman Gary Gensler was dismissed in a Texas court on Thursday evening. Consensys' lawsuit was originally filed in April and contained some heavy news, including allegations that the SEC had launched an investigation into Ethereum and that the regulator had issued a wells notice to the company behind MetaMask. The judge said in his ruling on Thursday: "The enforcement action does not constitute a final agency action, and the notice neither marks the completion of the agency's (i.e., the SEC's) decision-making process nor establishes the plaintiff's legal rights or obligations."

Blockchain Application

▌Galaxy Researcher: There is a high probability that the Ethereum Pectra upgrade will be executed in two parts

Christine Kim, a cryptocurrency researcher at Galaxy, believes that due to the complexity of the current Pectra fork and the need for more upgrades, the possibility of splitting into two independent upgrades (Prague upgrade and Electra upgrade) is "high." Christine Kim previously summarized the 196th Ethereum Core Developers Meeting (ACDE) and said that Ethereum developers are seriously considering splitting the Pectra upgrade into two upgrades. In addition, Christine Kim added that if developers decide to split the Pectra upgrade into two hard forks, its scope may change dramatically. It is reported that Ethereum developers will make a decision on this at the next Ethereum all-core developer conference call on September 19.

▌Bitfarms launches 2.2 EH/s mining machine hosting agreement ahead of schedule, opposed by Riot Platforms

Bitfarms announced that it will bring its 2.2 EH/s mining machine hosting agreement with Stronghold Digital Mining online in October 2024, two months earlier than originally planned. The agreement will enable Bitfarms to add 10,000 Bitmain T21 miners to its Panther Creek facility in Pennsylvania. Bitfarms CEO Ben Gagnon said the facilities will help the company expand its business, reduce electricity costs, and enter the fields of energy trading and AI. In addition, Bitfarms' Stronghold acquisition plan has triggered strong opposition from its largest shareholder, Riot Platforms. Riot has called for reforms to the Bitfarms board of directors and questioned the value of the Stronghold acquisition, believing that the transaction will dilute shareholder interests. Bitfarms responded by saying Riot’s proposal was motivated by its own interests and insisted that the acquisition of Stronghold was a strategic move to optimize its U.S. business.

▌Risc Zero: Bringing blockchain security to “any” off-chain application

According to a Sept. 16 announcement, Risc Zero is preparing to launch a service designed to bring blockchain security to any off-chain application using zero-knowledge (ZK) proofs. Risc said the service, called “Boundless,” is designed to solve blockchain’s toughest scalability challenges — including limitations on transaction throughput and cross-chain interoperability — by using ZK proofs to “bypass traditional on-chain execution limitations.”

▌JP Morgan CEO admits blockchain has value, but remains skeptical of cryptocurrencies

JP Morgan CEO Jamie Dimon said at the Financial Markets Quality Conference that the bank could be a "big user" of blockchain technology. Although Dimon has long been skeptical of cryptocurrencies and once called Bitcoin a "pet rock," he acknowledged the value of blockchain as a way to "share data and build trust." JPMorgan created its private network Onyx based on Ethereum in 2020 for wholesale payments, peer-to-peer lending and cross-border payments, and has processed more than $700 billion in transactions to date. Dimon pointed out that although blockchain technology is 12 years old, in his view, it is still slow compared to the progress of artificial intelligence.

▌Moody's: DePIN technology has great potential but faces multiple challenges

Moody's first report on DePIN (decentralized physical infrastructure) pointed out that the technology helps the existing network to expand and innovate, but the vague regulatory environment may hinder its widespread application. The report said that DePIN can improve network reliability and reduce operating costs by combining blockchain with real-world networks such as telecommunications and storage. However, the promotion of technology faces many challenges, including unclear supervision, network security risks and huge infrastructure investment needs. The report also mentioned Helium as a successful case in this field, attracting more than 350,000 users to participate.

▌Mizuho Bank and Fujitsu collaborate to use blockchain to simplify carbon credit issuance

Golden Finance reported that Mizuho Bank, Fujitsu and heavy industry company IHI have reached a cooperation to use blockchain technology to simplify the issuance process of Japanese carbon credits (J-Credits). The issuance of carbon credits requires the government to certify greenhouse gas emission reductions, which is a complex and time-consuming process, and the issuer may face the risk of not being able to find a buyer. Mizuho Bank will acquire J-Credits as a "preferred buyer" and resell them to customers. The bank is also a market maker for J-Credits on the Tokyo Stock Exchange. The cooperation is expected to start supporting solar power generation in the first half of 2025. Fujitsu's blockchain solution will be used to monitor, report and verify carbon emission reduction data to ensure the credibility of the data.

▌MANTRA: MANTRA Chain mainnet to be launched in October

On September 18, MANTRA announced on the X platform that the MANTRA Chain mainnet is scheduled to be launched in October, aiming to promote the on-chain of real-world assets. The MANTRA Chain mainnet will include the following key features: -Verifiable network security and stability, reducing counterparty risk; -Trusted platform for deploying institutional capital on the chain.

▌Hut 8 and Bitmain launch next-generation ASIC miners, increasing hash rate by 80%

Hut 8 Corp. announced the expansion of its cooperation with Bitmain Technology to launch the next-generation ASIC miner U3S21EXPH. Hut 8 plans to deploy the model in the second quarter of 2025 through a 15 exahash per second hosting agreement, leveraging custom data center infrastructure developed in-house. According to the press release, the initial agreement includes approximately 15 EH/s and is expected to increase the hash rate managed by Hut 8 from 18.5 EH/s to approximately 33.5 EH/s, an increase of 80%. As of press time, the price of Hut 8 stock (ticker: HUT) is up more than 7%.

▌Polkadot Launches "Agile Coretime" to Improve Network Efficiency and Scalability

Polkadot has released its key product "Agile Coretime" to pave the way for the Polkadot 2.0 upgrade. This feature replaces the previous auction system by dynamically allocating computing resources, improving the efficiency, flexibility and scalability of the network. Developers can now obtain block space on demand, reducing costs and avoiding network congestion. This change is particularly friendly to start-up projects, lowering the entry threshold and providing more possibilities for future innovative applications. Polkadot's core developers said that this move will attract more outstanding projects.

Cryptocurrency

▌"Trump Bitcoin Buys Burger" Concept Coin BURGER Market Value Exceeds $4.5 Million

Ethereum Ecosystem Meme Coin BURGER Market Value Exceeds $4.5 Million, and the Token's Trading Volume Reached $15 Million in 18 Hours After Launching. Earlier news today, former US President Trump used Bitcoin to buy cheeseburgers at PubKey, a Bitcoin-themed bar near New York University. Note: Meme coins have no actual use cases, and prices fluctuate greatly, so users need to invest with caution.

▌Yesterday, GBTC and ETHE had no inflow or outflow of funds

According to Farside Investors monitoring, the data of US spot Bitcoin ETF and spot Ethereum ETF (September 19) are as follows: Spot Bitcoin ETF: BTC net outflow of US$9.5 million; GBTC has no inflow or outflow of funds. Spot Ethereum ETF: ETHE, ETH have no inflow or outflow of funds.

▌Informed sources: Revolut plans to issue its own stablecoin

According to people familiar with the matter, financial technology giant Revolut intends to issue its own stablecoin. The company, which obtained a UK banking license in July and was valued at US$45 billion earlier this year, is said to have made considerable progress in creating stablecoins. When asked about its stablecoin plans, a Revolut spokesperson said the company hopes to expand its cryptocurrency products and take a compliance-first approach.

▌JPMorgan Chase, UBS and others join the Bank for International Settlements' blockchain-based cross-border payment reform plan

The Bank for International Settlements has teamed up with some of the world's largest banks and credit card companies on a blockchain-based project aimed at overhauling global cross-border payments. JPMorgan Chase, Deutsche Bank, UBS Group AG, as well as Visa Inc. and Mastercard Inc. have all joined the Agora project, which was launched in May. The full list of private sector participants includes 41 companies, which will participate along with seven central banks in regions including the United States, the euro zone, Japan and the United Kingdom. The Bank for International Settlements is exploring the creation of an international platform through Agora (Greek for market) where token assets can be bought and sold using digital currencies backed by participating central banks, which issue the world's most important reserve currencies. On this unified ledger, investors can use almost risk-free central bank currencies for cross-border transactions. Currently, the only relatively safe currency is cash, which does not exist in digital form.

▌Trump: Cryptocurrency companies should have certain security measures

Golden Finance reported that former US President Trump: Cryptocurrency companies should have certain security measures. It is important to establish a legal cryptocurrency framework in the United States.

▌Coinbase CEO denies selling "paper bitcoins" to BlackRock and cbBTC

Golden Finance reported that Coinbase founder and CEO Brian Armstrong denied speculation that the company had sold paper bitcoins to BlackRock and did not maintain 1:1 support. In a statement to cryptocurrency analyst Tyler Durden published on X, Armstrong explained that the minting and destruction of Bitcoin for the BlackRock Spot Bitcoin ETF is transparent and on-chain. Durden shared data from Cryptoquant showing that Coinbase was the largest buyer and seller at market highs and lows. In addition, he hinted that the exchange allowed BlackRock to borrow Bitcoin without providing collateral. Since BlackRock is one of the world's largest Bitcoin holders, the analyst said the two companies may profit by controlling the declines and gains of the cryptocurrency.

Important Economic Dynamics

▌US stocks continue to rise, with the Nasdaq up nearly 3%

US stocks continued to rise, with the S&P 500 up more than 2%, setting a new record; the Nasdaq rose nearly 3%, and the Dow rose about 1.5%. Tesla rose more than 7%, Nvidia rose more than 5%, Meta rose more than 3%, Netflix, Microsoft, and Google rose more than 2%.

▌Standard Chartered Bank: Bitcoin and the broader crypto market will continue to rise after the Fed's rate cut

Standard Chartered Bank analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Fed's recent rate cut, which is more driven by favorable macroeconomic conditions than the results of the U.S. presidential election. "For the first time after the FOMC meeting, digital assets ranked at the top in terms of performance. This is the case even though Polymarket showed Kamala Harris' approval rating was 52/47 today." He attributed this positive performance to macroeconomic drivers beginning to overwhelm election-related uncertainties. Kendrick insisted that the U.S. presidential election's impact on Bitcoin prices is not as great as it used to be. "While the US election is important, macro drivers are beginning to dominate," he said. Kendrick said he is monitoring the difference between short-term and long-term US Treasury yields as an indicator of market conditions that are favorable for digital assets. "I look at the US 2s10s curve, and a steeper US yield curve is favorable for digital assets."

▌US stocks continue to rise, with the Nasdaq up nearly 3%

US stocks continue to rise, with the S&P 500 up more than 2%, setting a new record; the Nasdaq up nearly 3%, and the Dow up about 1.5%. Tesla rose more than 7%, Nvidia rose more than 5%, Meta rose more than 3%, Netflix, Microsoft, and Google rose more than 2%.

▌Standard Chartered: Bitcoin and the broader crypto market will continue to rise after the Fed's rate cut

Standard Chartered analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve's recent rate cut, which is driven more by favorable macroeconomic conditions than the results of the U.S. presidential election. "For the first time, digital assets have topped the list in terms of performance after the FOMC meeting. This is the case even though Polymarket showed Kamala Harris' approval rating at 52/47 today," Kendrick noted in an email on Thursday. He attributed the positive performance to macroeconomic drivers starting to overwhelm election-related uncertainty. Kendrick insisted that the U.S. presidential election is not as influential on Bitcoin prices as it used to be. "While the U.S. election is important, macro drivers are starting to take over," he said, saying that he is monitoring the difference between short-term and long-term U.S. Treasury yields as an indicator of market conditions that are favorable for digital assets. "I looked at the U.S. 2s10s curve, and a steeper U.S. yield curve is good for digital assets."

▌Senator Warren calls on the Fed to cut interest rates by 75 basis points at its next meeting

Golden Finance reported that the market generally expects the Fed to cut interest rates by 0.5%, but Senator Warren believes that the Fed needs to take faster action to save the labor market. Bitcoin skeptic Elizabeth Warren (D-Massachusetts) and other Democratic senators sent a letter to the Federal Reserve on Monday, calling for more aggressive rate cuts than the market expected. “We write today to urge the Federal Reserve (Fed) to cut the federal funds rate (currently at a two-decade high of 5.3%) by 75 basis points (bps) at the September 17-18, 2024 Federal Open Market Committee (FOMC) meeting,” the senators wrote. ▌ Bitwise Analyst: Expectations of further Fed rate cuts intensify, net positive for crypto assets André Dragosch, head of European research at Bitwise, said: “If the Fed cuts by 50 basis points, the crypto market reaction may be positive, as this particular leading indicator has already shown that underlying economic momentum has even accelerated in September. I believe that the market will be driven more by expectations of rate cuts than the rate cuts themselves in the coming months. Due to the weak US economy and the impending recession, expectations of further rate cuts are likely to intensify, and we expect this to be a net positive for Bitcoin and crypto assets.” left;">Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.