U.S. lawmakers are debating whether the SEC is overreaching. The co-founder of BitMEX told the audience at Token2039 in Singapore that he expects a short-term market crash if interest rates are cut. Meanwhile, two Republican lawmakers have asked SEC Chairman Gary Gensler to answer questions about cryptocurrency airdrops.
US lawmakers ask SEC for clarity on cryptocurrencies
U.S. Republican Rep. French Hill delivered a critical statement on September 18 at a House Subcommittee on Digital Assets, Financial Technology, and Inclusion hearing, saying the SEC’s enforcement abuses “make it harder for legitimate actors to follow the rules.”
The hearing, which lawmakers called “Dazed and Confused: Analyzing the SEC’s Politicized Approach to Digital Assets,” included testimony from numerous lawmakers on both sides of the U.S. political spectrum, with at least one Democrat siding with the Republicans on the issue.
Arthur Hayes Predicts Short-Term Market Crash Due to Rate Cuts: Token2049
As investors anticipate the U.S. Federal Reserve (Fed) to cut interest rates for the first time in four years, BitMEX co-founder Arthur Hayes shared his views on how this potential cut could impact the cryptocurrency markets.
Hayes gave a keynote speech titled “Thoughts on Current Macro Events” at Token2049 in Singapore on September 18.
He explained the difference between holding 5% yielding Treasury bills (T-bills) and investing in cryptocurrencies in the context of the market changes that could occur due to the Federal Reserve’s decision to cut interest rates, which is expected to be announced on September 18.
Arthur Hayes, BitMEX co-founder and Maelstrom chief investment officer, on stage at Token2049 in Singapore. Source: Cointelegraph
Before discussing the implications of cryptocurrencies behind a potential rate cut, Hayes criticized the Federal Reserve for considering a rate cut amid increased dollar printing and increased government spending.
“I think it’s a huge mistake for the Fed to be cutting rates at a time when the U.S. government is printing and spending more money than ever before in peacetime,” the entrepreneur said, adding:
“I think a lot of people are expecting a rate cut, and I think the stock market and other things will boom, but I think the market will crash within a few days of the Fed’s announcement.”
According to Hayes, a potential rate cut, which he expects to be between 75 and 50 basis points, would likely trigger a market pullback because it would “narrow the interest rate differential between the U.S. dollar and the Japanese yen.”
“We saw a mini-financial meltdown a couple of weeks ago when the yen went from 162 to 142, which was pretty much a 14-day trade,” the former BitMEX executive said, adding, “We’re going to see that financial stress come back.”
GOP leaders want answers from Gensler on cryptocurrency airdrops
Republican representatives Tom Emmer and Patrick McHenry have asked U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler to answer questions about the classification of cryptocurrency airdrops by the end of the month.
In a Sept. 17 letter to Gensler, Emmer and McHenry expressed concern that the SEC has made “arguments for airdropping” claims in various lawsuits over the past two years and is “preventing American citizens from shaping the next phase of the Internet.”
The lawmakers pointed to lawsuits the SEC filed against Hydrogen Technology Corporation in 2022 and against Justin Sun and others in March 2023, in which the regulator hinted that airdrops violated securities laws.
“We are concerned that misapplication of securities laws could prevent this technology from achieving its full potential of decentralization,” they wrote.
source: Tom Emmer
Emmer and McHenry asked Gensler to answer questions about how a cryptocurrency that is being given away for free could be a security by September 30, and how the SEC distinguishes airdrops from other rewards, such as credit card reward points.
They also asked whether regulators had assessed the market impact of classifying cryptocurrencies as securities, and what impact that would have on on-chain applications, economic growth, and tax revenues.
USDT on the TON chain has surpassed $1 billion.
According to data from on-chain research firm Token Terminal, Tether’s stablecoin USDT surpassed $1 billion in circulating supply on the Open Network (TON) on September 17.
TON Chain’s USDT Surpasses $1 Billion Source: Token Terminal
The surge in USDT activity on the TON platform is due to the proliferation of Telegram Mini apps, which are bringing USDT into an increasingly active community. According to data provided by Token Terminal, the $1 billion circulation threshold has been surpassed after about five months of activity.