Federal judge rejects SEC and Ripple's joint motion to settle lawsuit: CNBC Crypto World
On today's episode of CNBC Crypto World, stablecoin issuer Circle resumed its rally after a brief pullback this week. Plus, the Federal Housing Finance Agency has issued a directive ordering Fannie Mae and Freddie Mac to formally consider crypto as an asset in single-family mortgage loan risk assessments. And, Zach Abrams the CEO of Bridge, discusses the wave of stablecoin interest on Wall Street.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Coinbase and Circle seeing gains: What's behind the big rally?
Crypto-related stocks are riding a wave of optimism, with Coinbase (COIN) on pace to close at a record high, now up over 950% since its 2022 low. Yahoo Finance Senior Business Reporter Ines Ferré joins Market Domination to break down what's fueling the rally, including momentum behind Coinbase and stablecoin issuer Circle Internet Group (CRCL). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Crypto-related stocks, enjoying their time in the sun amid a run of optimism in the industry. Yahoo Finance's Ines Ferre joins us now with a closer look. Ines. Yeah, Josh. And I want to point out two stocks in particular that have just been on fire. First, let's start with Coinbase. Coinbase is on pace to close at a record. Right now the stock is at $374 per share. And this stock has seen really a remarkable turnaround. Do you remember back in 2022 when it hit a low? Back then, the stock is now up more than 950% since that time. And Bernstein this week called Coinbase the crypto Universal Bank, a one-stop Amazon of crypto services. Because the analyst was pointing out that beyond its trading platform, it has really gone into a multitude of other crypto-related services for institutions, custodianship, and also its leadership within the stable coin space. Which brings me to the next stock that we're looking at, and that is Circle, which IPOed back on June 5th. This is a pure play of stable coins. By the way, a Coinbase is a minority stakeholder in Circle. And this is the issuer of USDC, a US dollar coin, many of which, these are backed by short-term treasuries. And the stable coin bill last week really was significant for this stock, and it's bullish for the crypto industry as a whole. One analyst though did warn that when it comes to Circle, he put it on a neutral rating this week, warning of more competition because of this regulation that's coming around stable coins, because this is going to attract more competition. But look, other analysts are talking about widespread adoption of stable coins that they will be, that Circle will be capturing market share from Tether, which is a privately owned issuer. And as far as the volatility for this stock is concerned, because we've seen the stable coin really one day go up 15%, the next day go down 15%. Look, I spoke to this one researcher that told me he's very bullish on this, and he says it's not so much as volatility. It's a reflection of highly, a highly underpriced IPO. And he makes a point that Wall Street has been making now for some time when it comes to stable coins. He's saying that Circle, Tether, these are companies that are big, big buyers of short-term treasuries. This is providing funding directly to the US government for its debt. And so that there is an incentive from the federal government to cooperate, to work with stable coin issuers. This is very bullish for this type of stock. All right. Thank you, Ines. Sign in to access your portfolio
Forbes
an hour ago
- Forbes
3 Implications Of Crypto Backed Mortgages For Investors
Sound money is coming to the mortgage market As the cryptoasset industry continues to accelerate and achieve wider mainstream adoption, one aspect of the financial conversation has remained excluded; the U.S. housing market. While bitcoin backed mortgages did make a splash in the past the number of U.S. mortgage applicants that have actually leveraged crypto remained a miniscule percentage of the total market. Mirroring the broadening acceptance of crypto across the U.S. banking system, the approval of crypto initiatives at the U.S. and federal level, and the deployment of crypto and blockchain services across the TradFi sector the recent movement out of the FHFA should not come as a surprise to the crypto landscape. Not a surprise but a development that can potentially unlock an entirely new aspect of crypto ownership that – to date – had remained untapped. Previously Fannie Mae and Freddie Mac both required that cryptocurrency holdings be exchanged into U.S. dollars and for these proceeds to be held in a U.S. or state regulated financial institution to be considered for collateral purposes. In other words under current policies U.S. investors who own cryptoassets had to sell, incur tax liabilities, and then deposit at specified institutions in order to have these funds counted for mortgage loan purposes. The announcement that both mortgage giants will now accept bitcoin and other cryptocurrencies as reserves during the risk assessment process is a significant step forward for further mainstream adoption. Changing these requirements can potentially produce several implications for investors that need to be taken into account moving forward. Crypto Continues Its Mainstream Adoption One of the core criteria that support assets that differentiates the U.S. dollar, U.S. Treasuries, and precious metals such as gold from other investments/assets is that the former are almost universally treated as top tier collateral for transactions involving leverage. Waiting on the IRS to alter the criteria by which it judges and evaluates cryptoassets will be an endeavor requiring significant patience, but the utilization of bitcoin and other cryptoassets as the equivalent of dollars for collateral purposes is a substantial step forward in further adoption. One additional point that is worth mentioning is that, as institutions as large as JP Morgan introduce products that are hybridized demand deposits/stablecoins it would seem logical to conclude that an increasing percentage of U.S. dollar demand deposits (savings accounts) will also incorporate some aspect of tokenization. Tweaking criteria to appropriately account for these savings and investments, which if now denominated in any cryptoasset or token would necessitate a sale, can help unlock liquidity for U.S. crypto investors. Sound Money For Housing As the prices of houses has continued to increase in nominal terms, which represents a legitimate and ongoing source of political and economic consternation for investors, taxpayers, and policymakers alike, an alternative method of pricing and valuation has continued to emerge. When bitcoin and other cryptoassets were only owned by a small percentage of the overall investing marketplace the concept of pricing housing and other assets in bitcoin or cryptoassets would have seemed far-fetched at best and a potential waste of time and investing energy at worst. This has continued to change, however, and the permeation and integration of cryptoassets within the economic landscape has continued to increase. For example, the price of a median house in bitcoin, as per the Bitcoin Inflation Index, continues to hit all time lows even as nominal prices have reached all-time-highs. Outside of the obvious and short-term economic benefits this represents for current bitcoin owners, the incentive structure surrounding bitcoin (and potentially other cryptoassets) could begin to pivot from one of speculation to one of saving prioritization. Such an approach also mirrors some of the original tenants embodied in the original bitcoin blockchain whitepaper; sound money, a prioritization of savings, and less dependence on price speculation for economic returns. Potential Tax Policy Changes A substantial obstacle to wider adoption of utilization of cryptoassets and cryptocurrencies is the tax treatment of said assets. At this point every transaction, exchange, transformation, or other transfer that involves said assets will incur at least a tax reporting obligation if not a tax payment obligation. Given the change in which assets will be counted as reserve assets for collateral purposes, there is an opportunity for a policy tweak that would enhance the changes out of the FHFA. Since bitcoin and other cryptoassets can now be used as collateral for mortgage purposes it stands to reason that other use cases for crypto assets – student loans, auto loans, etc. – might also follow suit. As investors now need not engage in a forced sale of assets to make use of savings denominated in crypto for mortgage purposes, other large purchases (and the regulatory bodies therein) should take note as to how similar policies could be implemented in other areas. Crypto continues to expand, and crypto-backed mortgages are just the beginning.
Bloomberg
an hour ago
- Bloomberg
Stock Movers: Circle, Nvidia, Micron
On this episode of Stock Movers: Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec. - Nvidia (NVDA) shares continues its rally that started yesterday when it rose to an all-time high. Recent earnings from Nvidia were a notable catalyst for bulls, as the report showed robust growth and pointed to more strength ahead despite the impact of restrictions on the sales of advanced semiconductors in China. Prints from Microsoft Corp., Meta Platforms Inc., Alphabet Inc., and Inc. — which together make up more than 40% of Nvidia's revenue, per supply chain data compiled by Bloomberg — further underlined how the company's biggest customers continue to spend aggressively building out their AI infrastructure. - Circle (CRCL) shares rose after dropping 25% just two days ago as more players begin to enter the stablecoin industry since the Senate passed new legislation. - Micron (MU) shares slid as invested digested its earnings results from yesterday after the closing bell. The top-performing chipmaker on Wall Street this year, delivered an outlook that wasn't quite rosy enough to keep its 2025 rally going. Though the company posted third-quarter results and a fourth-quarter forecast that exceeded estimates, the stock began sliding Wednesday in late trading after a conference call with executives and continued to decline Thursday. A key focus was high-bandwidth memory, a component used in artificial intelligence computing. The technology is fueling a sales surge at Micron, but the company didn't predict the kind of runaway growth that some investors were looking for.
