No Clarity Act, No Interest Rate Cuts
Clarity Act
It's a shame the US Senate could not pass the Clarity Act yesterday. All parties involved didn't do well at all. No Democrat Senator voted for it and 4 Republicans voted against too 🤦🏿♂️.
I'm saying they didn't do well because they seem not to realize how badly the US needs a Crypto Statute that answers all the legal questions about the status of Cryptocurrencies.
Right now all the laws that apply to Cryptocurrencies are derived from other banking and asset laws and it can be quite confusing sometimes about how they should apply to Crypto. But for once they had the chance to make a Crypto law that would specifically be about Cryptocurrencies and they failed.
The Republicans are to blame, and the Democrats are to blame too. The Democrats are to blame because they said they'll love a crypto Law and they seem to see it's importance but they don't like the provisions of the current law, they want it's contents changed.
Republicans on the other hand are to blame because they're the ones championing the law and they were not diligent enough to work on the provisions of the law for all parties to be happy with it.
You might say they probably tried their best but the Democrats could not be made happy but that seems to clearly not be the case. Because there were negotiations about the provisions of the law up until the last minute. There's no way they should have still been debating until the last minute. They had so many months to share their grievances and concerns, but we saw them still doing that into the last minute.
These guys should have worked it all out a long time ago before bringing it to the floor for the vote 🤦🏿♂️. And this is mainly the fault of the guys championing the law: the Republicans.
No excuses.
Probably they'll get to it soon and carry out another vote.
No Rate Cuts
The breaking news just came in, the Federal Reserve just increased interest rates by 25bps. That came as quite a shock to me.
I thought Trump was desperate to send the markets into an uptrend just in time for the midterms because he's the sort of guy that likes bragging about those things, and we know that a lot of people who love him do so because they thought he is good for the markets.
I thought this desperation means he would do anything to make his newly appointed Fed Chairman Warsh cut rates. Cutting of rates would have sent the markets into an uptrend. But this increment is supposed to send it into a downtrend.
Inflation, employment and other data that the Fed looks at before cutting or hiking interest rates indicates that interest rates are supposed to be hiked. But since we all know that Trump can be very selfish and dumb it seemed expected that he wouldn't mind but go ahead to press Warsh to cut the rates.
Especially as Trump had been pressuring the former Fed Chair to cut the rates only for the former Chair's tenure to be over and the next man Trump nominates end up not cutting rates. How unexpected. Maybe they'll do it later on, maybe they don't want to hurry it up, but because of the midterms I thought they wouldn't have the luxury of waiting.
Conclusion
The markets are not dumping as much as one would have expected. That's another surprise.
At this point it's kinda funny trying to predict the markets, it seems it's more random than it gets credit for. Or is there something else the market is waiting? Maybe the SEC and CFTC rules?What happens next would be very interesting to apply hindsight to.
The End
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