FameEX Morning Crypto News Recap | July 12, 2024

SEC Grants Exemption to Companies and Financial Institutions from Cryptocurrency Accounting Rules

On July 12, certain companies and financial institutions proposed business requirements that the U.S. SEC staff approved, exempting them from the contentious cryptocurrency accounting guidance of SAB 121 issued in March 2022. Following numerous cryptocurrency industry bankruptcies, these companies have consulted with the SEC to establish new policies and procedures for cryptocurrency handling.

Perspective: Weak US CPI Fuels Speculation of Rate Cuts, USD/JPY Volatility Reaches May Peak

Mizuho senior economist Colin Asher noted that weak US CPI data has heightened speculation about potential US interest rate cuts. The USD/JPY, being the most tightly-positioned among G10 currency pairs, experienced significant short-covering today. This resulted in the highest intraday volatility since the early May intervention, marking a notable shift in the currency market.

U.S. Tech Giants' Stock Values Plummet, Shedding Nearly $600 Billion in Market Value

On July 12, following positive US CPI data, traders pulled back from recently high-performing tech giants, leading to substantial stock declines. Nvidia dropped 5.57%, Tesla 8.44%, and Meta over 4%, while Apple, Microsoft, Google, and Amazon each fell over 2%. In contrast, the small-cap focused Russell 2000 index rose by over 3.5%, as the "Big Seven" tech companies saw nearly $600 billion erased from their market value in a single day.

Mizuho Securities' Chief U.S. Economist Cautions Against Rapid Federal Reserve Rate Cuts

Steven Ricchiuto, chief U.S. economist at Mizuho Securities, cautioned against quick Federal Reserve rate cuts despite weak inflation data. He stated that the Fed could only reduce rates within the limits forecasted by the dot plot, and warned that market pricing might surpass these levels, emphasizing the risks of too rapid a reduction in interest rates.

House Unsuccessful in Overriding Biden’s Veto of SEC Crypto Rule Nullification

The US House of Representatives failed to override President Joe Biden's veto of a resolution linked to an SEC rule mandating banks to list cryptocurrency as a liability on balance sheets. On July 11, 228 House members voted to override the veto of H.J.Res. 109 concerning SEC Staff Accounting Bulletin No. 121, missing the required two-thirds majority by 60 votes.

MicroStrategy Announces 10-for-1 Stock Split to Enhance Accessibility

The board of directors of Nasdaq-listed MicroStrategy has approved a 10-for-1 stock split for its Class A and B common stock to boost investor and employee accessibility. Announced on July 11, the split will be implemented as a stock dividend, providing stockholders of both classes with nine additional shares for each share they own.

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