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 through this week's blockchain industry events.
Headlines
▌Biden: Interest rates are expected to fall further
U.S. 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 Federal Reserve's interest 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 taking office in the White House.
▌The Federal Reserve cut interest rates by 50 basis points, starting a cycle of interest rate cuts
Golden Finance reported that the Federal Reserve started a cycle of interest rate cuts, 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
Binance co-founder Changpeng Zhao will be released from a U.S. prison on September 29, according to the U.S. Federal Bureau of Prisons website. 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 soon-to-be-released inmates by working with federal courts, the U.S. Marshals Service, and local correctional agencies.
▌Musk deleted the assassination post in seconds, and the White House called it irresponsible
As the 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 U.S. Secret Service said they had noticed Musk’s post. The White House called Musk’s post “irresponsible.”
Earlier, it was reported that an X user asked Musk the question: "Why did they want to assassinate Trump?" Musk, who has expressed support for Trump and often comments on the US presidential election, replied: "Also, no one is trying 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 caused 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 US CFTC warns that election betting is about to explode and seeks court to extend the suspension of Kalshi 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, U.S. District of Columbia federal judge Jia Cobb issued a formal opinion, ruling that the CFTC has no authority to conduct a "public interest review" to prevent Kalshi from listing a political prediction market in the United States. Judge Cobb pointed out that Kalshi's contracts do not involve illegal activities or gambling, but about elections, neither of which falls within the jurisdiction of the CFTC. Currently, the U.S. Congress has revoked the CFTC's public review of certain proposed futures contracts, saying that unless these contracts fall into specific categories such as terrorism or gambling. The CFTC noted that after this 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. District of Columbia Court of Appeals extends the suspension of Kalshi's contracts during the appeal, other CFTC-regulated exchanges will follow suit. "A surge in election betting on U.S. futures exchanges would harm the public interest." The CFTC reiterated that the harms include market manipulation and "undermining election integrity."
Indian court bars police from freezing entire bank accounts in cryptocurrency fraud investigation
The Madras High Court in India 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 came after a case in which an account was frozen due to a cryptocurrency investigation. Justice G. Jayachandran stressed that freezing entire accounts deprives individuals of their livelihood and financial stability. He pointed out that account holders often do not know 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 Commissioner 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, says 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 spends money to support Republican candidates, which is expected to have a significant impact on the control of the House of Representatives
Musk's super PAC is spending $2.1 million to support Republican candidates in swing districts across the country, which could help the world's richest man build a group of allies in Congress. The committee's support could be key in determining whether Republicans can retain their majority in the House of Representatives after the November election. A new federal filing details the latest spending, the first major effort by the super PAC, which Musk established earlier this year, to influence an election outside of the presidential race.
▌RBA: Wholesale CBDC will be given priority
Jones, assistant governor of the Reserve Bank of Australia, said that an industry project on wholesale central bank digital currency (CBDC) and tokenized commercial bank deposits will be launched. Committed to a three-year digital currency research project. We will give priority to wholesale central bank digital currency. Wholesale central bank digital currency has greater economic benefits than retail central bank digital currency. The launch of retail central bank digital currency will be decided by the government and must be legislated.
Louisiana State Government Now Accepts Bitcoin Payments
According to Bitcoin Magazine, the Louisiana state government in the United States now accepts Bitcoin payments.
▌Silvergate Capital files for Chapter 11 bankruptcy protection in Delaware Bankruptcy Court
Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court 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 severe damage to the reputation of its subsidiary Silvergate Bank after liquidity problems and the collapse of crypto exchange FTX. Silvergate previously had close ties with the crypto industry, but the company faced 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 transactions 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 involved in illegal activities
German authorities have shut down 47 cryptocurrency exchanges suspected of being involved in criminal activities such as money laundering, saying that the exchanges deliberately failed to fulfill their obligations to conduct identity and background checks on their customers. Some of the exchanges included Xchange Cash, 60cek, Baksman, and a number of other smaller platforms. One of the exchanges has been active since 2012, while others were founded 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 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 process nor establishes the plaintiff's legal rights or obligations," the judge said in Thursday's ruling.
Blockchain Applications
▌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 Conference (ACDE) and said that Ethereum developers are seriously considering splitting the Pectra upgrade into two upgrades. In addition, Christine Kim also 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, but is opposed by Riot Platforms
Bitfarms announced that its 2.2 EH/s mining machine hosting agreement with Stronghold Digital Mining will be brought 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 energy trading and AI fields. In addition, Bitfarms' Stronghold acquisition plan has sparked strong opposition from its largest shareholder, Riot Platforms. Riot called for reforms to the Bitfarms board of directors and questioned the value of the Stronghold acquisition, believing that the transaction would dilute shareholder interests. Bitfarms responded that Riot's proposal was in its own interest and insisted that the acquisition of Stronghold was a strategic move to optimize its US business.
▌Risc Zero: Bringing blockchain security to “any” off-chain applications
Risc Zero is preparing to launch a service designed to bring blockchain security to any off-chain application using zero-knowledge (ZK) proofs, according to an announcement on Sept. 16. Risc said the service, called “Boundless,” aims to address blockchain’s toughest scalability challenges — including limits on transaction throughput and cross-chain interoperability — by using ZK proofs to “bypass traditional on-chain execution limitations.”
▌JPMorgan Chase CEO admits blockchain has value, but remains skeptical of cryptocurrency
JPMorgan Chase 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 Chase 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) points out that the technology helps existing networks 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 the greenhouse gas emission reduction, which is a complicated 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 is planned 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 to reduce 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 collaboration with Bitmain Technologies to launch the next-generation ASIC miner, the 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 Hut 8's managed hash rate 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 released its important product "Agile Coretime", paving 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, reduce costs and avoid network congestion. This change is particularly friendly to start-up projects, lowering the entry barrier and providing more possibilities for future innovative applications. Polkadot's core developers said that this move will attract more outstanding projects.
Cryptocurrency
▌“Trump buys burgers with Bitcoin” concept coin BURGER market value exceeds $4.5 million
The market value of the Ethereum ecosystem Meme coin BURGER has exceeded 4.5 million US dollars, and the trading volume of the token has reached 15 million US dollars in the first 18 hours since its launch. Earlier news today showed that former US President Trump used Bitcoin to buy a cheeseburger at PubKey, a Bitcoin-themed bar near New York University. Note: Meme coins have no actual use cases, and their prices fluctuate greatly. Users should invest with caution.
▌There was no inflow or outflow of funds in GBTC and ETHE yesterday
According to Farside Investors, 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. Spot Ethereum ETF: ETHE, ETH have no inflow or outflow.
▌Informed sources: Revolut plans to issue its own stablecoin
Fintech giant Revolut intends to issue its own stablecoin, according to people familiar with the matter. The company, which received a UK banking license in July and was valued at $45 billion earlier this year, is said to have made considerable progress in creating a stablecoin. When asked about its stablecoin plans, a Revolut spokesperson said the company hopes to expand its cryptocurrency products and take a compliance-first approach.
▌JP Morgan, 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 that aims to revolutionize global cross-border payments. JPMorgan Chase & Co., Deutsche Bank AG, UBS Group AG and Visa Inc. and Mastercard Inc. have all joined the Agora project, which 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 U.S., eurozone, Japan and the U.K. The BIS is exploring the creation of an international platform through Agora (Greek for market) where tokenized 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 central bank money to conduct cross-border transactions with virtually no risk. 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 said that 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 Bitcoin” to BlackRock and cbBTC
Golden Finance reported that Brian Armstrong, founder and CEO of Coinbase, denied speculation that the company had sold paper Bitcoin to BlackRock and did not maintain 1:1 support. In a statement to cryptocurrency analyst Tyler Durden published on X, Armstrong explained that the Bitcoin minting and destruction of the BlackRock Spot Bitcoin ETF are transparent and carried out on the chain. Durden shared data from Cryptoquant showing that Coinbase is 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 decline and rise of cryptocurrencies.
Important economic developments
▌U.S. stocks continued to rise, with the Nasdaq up nearly 3%
US stocks continued to rise, with the S&P 500 index rising by more than 2%, setting a new record high; the Nasdaq rose by nearly 3%, and the Dow Jones Industrial Average rose by about 1.5%. Tesla rose by more than 7%, Nvidia rose by more than 5%, Meta rose by more than 3%, and Netflix, Microsoft, and Google rose by more than 2%.
▌Standard Chartered Bank: Bitcoin and the broader crypto market will continue to rise after the Fed cuts interest rates
Standard Chartered analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve’s recent rate cut, 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 following the FOMC meeting. This is the case despite Polymarket showing 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, adding 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 look at the U.S. 2s10s curve, and a steeper U.S. yield curve is favorable for digital assets.”
▌U.S. stocks continued to rise, with the Nasdaq up nearly 3%
US stocks continued to rise, with the S&P 500 index rising by more than 2%, setting a new record high; the Nasdaq rose by nearly 3%, and the Dow Jones Industrial Average rose by about 1.5%. Tesla rose by more than 7%, Nvidia rose by more than 5%, Meta rose by more than 3%, and Netflix, Microsoft, and Google rose by more than 2%.
▌Standard Chartered Bank: Bitcoin and the broader crypto market will continue to rise after the Fed cuts interest rates
Standard Chartered analyst Geoff Kendrick predicts that Bitcoin and digital assets will continue to rise after the Federal Reserve’s recent rate cut, 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 following the FOMC meeting. This is the case despite Polymarket showing 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, adding 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 look at the U.S. 2s10s curve, and a steeper U.S. yield curve is favorable 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 Federal Reserve 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 wrote to the Federal Reserve on Monday, calling for more aggressive rate cuts than the market expects. "We write today to urge the Federal Reserve (Fed) to cut the federal funds rate (currently a two-decade high of 5.3%) by 75 basis points (bps) at the Federal Open Market Committee (FOMC) meeting on September 17-18, 2024," the senators wrote.
▌Bitwise analyst: Expectations of further rate cuts by the Federal Reserve intensify, which is a net positive for crypto assets
André Dragosch, head of European research at Bitwise, said: "If the Fed cuts rates by 50 basis points, the crypto market reaction will likely be positive, as this particular leading indicator already suggests that underlying economic momentum has even accelerated in September. I believe that the market will be driven more by expectations of rate cuts than 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, which we expect to be a net positive for Bitcoin and crypto assets."
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.
