As always Letizo news are among the first to shed light on US economy updates!

US latest news on SEC

According to anonymous sources cited today in a Bloomberg report by Tom Schoenberg and colleagues, the Securities and Exchange Commission (SEC) is reviewing the origin of Binance Coin (BNB) for possible violations of securities regulations. Since its launch in 2017, Binance has become the largest cryptocurrency exchange in the market by trading volume.

News of the federal regulatory investigation came just as Reuters released the results of an investigation in which the news service claims that at least $2.35 billion in illicit funds was laundered via Binance between 2017 and 2021.

Yet it’s unclear what sparked the SEC’s interest, but according to CoinMarketCap, BNB is currently the fifth-largest cryptocurrency with a total market capitalization of $48 billion and a 24-hour trading volume of $1.4 billion at the time of this writing. At the heart of the case is the question of whether digital currencies qualify as such, especially if they are sold to investors as funds to finance a company with the promise of subsequent profits.

BNB was launched in July 2017 as an ERC-20 token on the Ethereum blockchain. As per the world economy news, an initial coin offering of 100 million 15-cent tokens raised $15 million. BNB, the native currency on the Binance crypto exchange, can now be used to make purchases and make payments, as well as pay transaction fees on the Binance exchange at a discount.

Now Binance is facing a series of investigations in Washington. Representatives of the exchange commented on the current situation:

“Now it would be inappropriate to comment on our ongoing conversations with regulators. We will continue to operate in accordance with all requirements set by the regulators.”

There are concerns that regulators may also look at Binance US, a subsidiary founded in 2019, and whether it is sufficiently separated from its global parent.

Amid the US economy news, BNB collapsed 8% overnight to ~$275.

Letizo news about new US crypto bill

An allegedly leaked new U.S. crypto bill (due this week) has surfaced on social media.

Here are the main outcomes of the bill:

  • Disclosure laws have become stricter, it will be almost impossible for anonymous projects to exist.
  • DAOs, exchanges, and stablecoin providers must register. If not, they will be subject to higher taxes.
  • Many securities laws have been changed with greater clarity and many assets have been reclassified as commodities as defined by the CFTC.
  • Among all the points, the one that stood out was that if there is any debt, equity, income from profits, or dividends of any kind, then the underlying asset will no longer be designated as a digital asset commodity.
  • Due to tightening, the costs of crypto exchanges for information disclosure will increase, which can translate into an increase in commissions.
  • Definitions of bankruptcy have also been changed. According to the bill, the deposited assets will be returned to users, not liquidated

US stocks fell on labor market data and US economy news 

Talking about the best US economy news, it’s also worth mentioning that US stock indices fell sharply after the release of US economic statistics, which confirmed investors’ opinion that the Federal Reserve System (FRS) will continue the rapid tightening of monetary policy.

As per the US Department of Labor, the number of jobs increased by 390 thousand in May. The data for April were revised for the better: the number of jobs increased by 436 thousand, and not by 428 thousand, as previously reported. Experts surveyed by Bloomberg predicted, on average, their increase in May by 318 thousand.

Unemployment in the US last month remained at the April level – 3.6%. Analysts on average expected it to decline to 3.5%. The growth rate of hourly wages slowed to 5.2% in annual terms from 5.5% in April.

Although the pace of wage increases has slowed somewhat, they are still too high for the Fed to stop tightening policy, said Janus Henderson analyst Matt Peron.

“The data shows that inflation has probably peaked, but its pace is still unacceptable. As a result, the FRS rate hike factor will remain, and it will continue to contain the stock market until we see a further slowdown in inflation,” Market Watch quoted Peron.

Another US economy news states that data from the Institute of Supply Management (ISM) showed a drop in the US ISM Non-Manufacturing index in May to a 15-month low of 55.9 points. The average forecast of experts surveyed by Trading Economics assumed a less significant decline – to 56.4 points from 57.1 points in April.

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