The Breakdown First Five - Monday, September 23, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Gold Loves Cuts

Bitcoin rallied into Sunday evening as the first week of lower Fed rates commences. Bitcoin is up 6% since the Fed cut rates, the S&P 500 is at all time highs, but many are looking to gold for the signal. The precious metal is having its best year since 2007, up 27%, and punching into a fresh all time high. If this is a leading indicator that markets expect currency debasement, this could be a fantastic setup for Bitcoin, which lagged gold by six months in 2020. 

4. BOC Abandons CBDC

The Bank of Canada has scrapped plans to launch a retail CBDC citing a change of priorities. The central bank said they would refocus on improving real time payment rails without shifting to a CBDC. There is also a ton of new compliance to oversee with AML being applied to small payment providers from next year. The unspoken point is that no one wants to use a CBDC, as demonstrated across numerous BOC surveys and multiple unimpressive foreign pilot programs.  

3. BNY Custody Exemption

Rumors are swirling that BNY has been granted an exemption to offer Bitcoin custody by the SEC. Cythia Lummis’ General Counsel suggested this was the case in a Wyoming legislature hearing last week. The exemption comes after congress rebuked SAB121, clearly signaling that they want banks to custody crypto despite a Presidential veto. BNY will still need approval from their banking regulator, the New York Fed before launching. 

2. SEC Approves Bitcoin Options

The SEC has approved options to be listed on the Blackrock Bitcoin ETF. Other approvals are assumed to be in the pipeline after a ridiculously long 9-month wait. The options will still need approval from the OCC and the CFTC before trading can begin. Opinions differ. Some think this will be a huge injection of new leverage, with regulated options on stock exchanges dramatically more accessible than existing products. Others believe it will suppress volatility. 

1. Kamala’s First Crypto Statement

Kamala Harris has made her first statement on crypto policy while speaking at a New York fundraiser. She said her administration would “encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.” The statement was made in the heart of Wall St, so might have been aimed at big money donors rather than crypto plebs. Still, progress is progress, even though it’s not nearly enough for many.