FameEX Morning Crypto News Recap | July 12, 2024

SEC Exempts Companies and Financial Institutions from Cryptocurrency Accounting Regulations

On July 12, the U.S. SEC staff approved specific business requirements from certain companies and financial institutions, exempting them from the controversial SAB 121 cryptocurrency accounting guidance issued in March 2022. This comes after several cryptocurrency industry bankruptcies prompted these entities to seek SEC guidance on new cryptocurrency policies and procedures.

Viewpoint: Soft US CPI Triggers Speculation on Interest Rate Cuts, USD/JPY Volatility Soars to May High

Mizuho senior economist Colin Asher highlighted that weak US CPI data has sparked increased speculation of US interest rate cuts. The USD/JPY, tightly positioned among G10 currencies, saw significant short-covering, leading to the highest intraday volatility since the early May intervention, signaling a major shift in the currency market.

U.S. Tech Giants' Stocks Tumble, Erasing Nearly $600 Billion in Market Value

On July 12, after positive US CPI data, traders withdrew from top tech stocks, causing significant declines. Nvidia fell 5.57%, Tesla 8.44%, and Meta over 4%, with Apple, Microsoft, Google, and Amazon dropping over 2%. Conversely, the small-cap Russell 2000 index climbed more than 3.5%, while the "Big Seven" tech firms lost nearly $600 billion in market value in one day.

Mizuho Securities' Top U.S. Economist Warns of Risks from Swift Federal Reserve Rate Cuts

Steven Ricchiuto, Mizuho Securities' chief U.S. economist, warned against rapid Federal Reserve rate cuts in light of weak inflation. He noted the Fed can only cut rates to the extent predicted by the dot plot and highlighted risks if market pricing exceeds these forecasts, cautioning against too swift a reduction in interest rates.

House Fails to Overturn Biden's Veto on Repealing SEC Crypto Rule

The US House of Representatives did not achieve enough votes to override President Joe Biden's veto of a resolution affecting an SEC rule that requires banks to list cryptocurrencies as liabilities. In the vote on July 11, 228 members supported overturning the veto of H.J.Res. 109, related to SEC Staff Accounting Bulletin No. 121, falling 60 votes short of the needed two-thirds majority.

MicroStrategy Implements 10-for-1 Stock Split to Increase Accessibility

MicroStrategy's board has approved a 10-for-1 stock split for its Class A and B shares to improve accessibility for investors and employees. Announced on July 11, this split will be executed as a stock dividend, giving stockholders nine additional shares for every share they currently own.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.​