- Stocks are mixed after a bullish opening early in the session. The Dow Jones dropped 0.8%, while the S&P and Nasdaq fell 0.1%. An initial bullish reaction was triggered by a below consensus PCE print of 0.2% month over month, below Dow Jones' 0.3% estimate, and in line with annual forecast. Investors are eying a significant jobs data release this Friday, which will be critical in the Federal Reserve's pace of rate hikes as the labor market has yet to show signs of softening, unlike recent inflation prints. $BTC has continued to show strength, rising by 1.7% over the last day, while $ETH rose 1.0%.$FTM has been a notable performer increasing 6.6% over the previous day and 37.7% over the last week, making it the top weekly gainer among the 100 largest coins. The bullish price action has followed a blog post by star DeFi developer and key FTM contributor Andre Cronje, which detailed how the $FTM team took the foundation's treasury from less than $5m in December 2018 to an estimated $340m today, primarily through DeFi farming.
- CFTC Chair Rostin Behnam claimed Bitcoin is the only digital asset that can be truly viewed as a commodity during a private speaking engagement at Princeton University. Benham backtracked on recent similar statements regarding Ethereum. While Bitcoin is almost universally seen as a non-security due to its decentralized structure, SEC Chairman Gensler has claimed Ethereum's recent transition to proof-of-stake could potentially make it a security. This is due to the nature of passive returns that accrue to stakers in proof-of-stake blockchains, which could draw regulatory scrutiny under the "anticipating profits based on the efforts of others" component of the Howey Test. The CFTC has been one of the most active regulators in crypto markets, engaging in over 60 enforcement cases since 2014. Yet Behnam stated the commission has limited resources and lacks direct oversight. A lack of regulatory clarity has created a regulatory vacuum where stakeholders are unsure whether oversight of cryptocurrencies should lie with the SEC or CFTC.
- Speaking at The New York Times Dealbook event, Larry Fink, CEO of the world's largest asset manager BlackRock, reiterated the firm's outlook on the potential for cryptocurrency and blockchain to revolutionize financial markets. Fink stated, "the next generation for markets, the next generation for securities, will be tokenization of securities." He argued the technology could lead to "reduced fees" and "instantaneous settlement [of] bonds and stocks" while disintermediating middlemen. BlackRock rose to prominence through its exchange-traded funds, which Fink claims led the previous evolution of investing, and he believes blockchain will lead the next. Fink also commented on BlackRock's investment in FTX, which led to an investment loss of $24m. He clarified the investment was held through a subsidiary "fund of funds" and not a "core part" of BlackRock's business. He blamed the collapse on FTX's token structure and warned exchanges issuing centralized tokens would likely have the same fate.
Crypto Daily Report – December 1
Dec 1, 2022
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