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CNBC Crypto World is a platform that features daily trading updates and the latest news from the digital currency markets, giving viewers insights into the world of cryptocurrencies. The platform aims to provide valuable information that can guide cryptocurrency traders, investors, and enthusiasts in making informed decisions.
Ether, the second-largest cryptocurrency in terms of market capitalization, rose to its highest levels since May 2021 after the US Federal Reserve raised interest rates and the White House announced plans to tax crypto mining.
The Fed’s decision to raise interest rates by a quarter of a percentage point, from 2% to 2.25%, sent shockwaves across the financial world. However, the decision had a positive impact on the crypto market, as crypto investors saw it as a validation of the growing legitimacy of crypto as an asset class.
The rise in Ether’s price, which jumped by nearly 6%, came as a surprise to many experts, who had predicted that the Fed’s decision to raise rates would have a negative impact on the cryptocurrency market. However, Ether proved to be resilient, and its price rose to $3,363.02, its highest level since May 2021.
The White House’s announcement that it was considering a tax on crypto mining also had a positive impact on the crypto market. The proposed tax, which would require crypto miners to pay a fee on the energy they consume, was seen as a sign that the US government is taking steps to regulate the crypto industry.
The news of the tax was particularly welcomed by the Ethereum community, as the cryptocurrency is known for its energy-intensive mining process. The proposed tax would not only help to reduce the environmental impact of Ethereum mining but would also create a level playing field for mining operations that use renewable energy sources.
The rise in Ether’s price after the Federal Reserve’s rate hike and the White House’s announcement of a crypto mining tax is an indication of the growing maturity of the crypto market. As the industry continues to evolve and mature, it is likely that we will see more government interventions and regulatory measures that will help to shape the future of crypto.
Overall, the recent developments in the crypto market are a testament to the resilience and adaptability of crypto as an asset class. Despite the challenges posed by government intervention and regulatory oversight, the crypto market continues to thrive, and investors remain bullish on its long-term prospects.
Today the White House pushes for a big tax on crypto mining Federal and international law enforcement arrests nearly 300 people and seized tens of millions of dollars worth of crypto and leaders of digital asset teams from Northern Trust and cancer Fitzgerald break down the future of tokenization from San Francisco Welcome to cnbc’s crypto world I’m Jordan Smith Bitcoin ether and Solana all reacting to the latest interest rate decision the FED just announced this afternoon along with new data showing private payrolls for the month of April Rising way more than Wall Street expected today the FED announced another
Quarter percentage Point rate hike in the central bank’s continued effort to curb inflation while still working to prevent a prolonged recession all right let’s talk about the top stories first the White House is pushing for a tax hike on crypto mining operations according to this post from the White House’s Council of economic
Advisors a new proposal in this year’s budget is the digital asset mining energy excise tax the goal of the new tax is to encourage companies to quote start taking better account of the harms they impose on society in the post which was published yesterday the administration made the case for attacks
Equal to 30 percent of a mining firm’s energy cost which of course could put a significant dent in the profits of these businesses at a time when crypto mining firms have already been dealing with both plunging crypto prices and higher energy costs in fact that was part of
The reason Bitcoin minor core scientific filed for bankruptcy protection back in December next federal and international law enforcement say they arrested 288 people and seized more than 53 million dollars in cash in crypto in a drug enforcement operation the dark web drug Crackdown dubbed operation Specter started in 2021 and involved law
Enforcement across three continents attorney general Merrick Garland made the announcement yesterday in a news conference parents and warned the justice department is cracking down on criminal crypto transactions and the online Criminal marketplaces that enable them dozens of guns and more than 850 kilograms of drugs or around 1900 pounds
Were also seized in the operation according to this news release from the europoll the operation resulted in the seizure of a dark web Marketplace called Monopoly Market Garland noted that in the U.S more than 150 people were arrested including a man in California who allegedly sold nearly two million
Dollars worth of meth and Fentanyl on the dark web all right on to our main story we’re giving you an inside look at digital assets week underway right now in San Francisco crypto world’s Tania McKeel is there and spoke with Justin Chapman the head of Northern Trust digital assets
And financial markets group about the future of tokenization on Wall Street tokenization seems like the obvious topic of the day I thought I was coming to a crypto conference for Bankers but this is really focused on tokenization um but but it is a blockchain conference it is a blockchain technology conference
So tell me about the blockchain part because it feels like this is not the first time we’ve heard of tokenization for sure why is the blockchain necessary yes so I think blockchain was probably the the Catalyst for most of these conversations I think tokenization is a product that derives from the
Opportunity of deploying a blockchain so we’re back back in the day when we first looked at this at Northern Trust about 2014 2015. I presented to the board and it was blockchain versus Bitcoin so the conversation was trying to create a picture of what the technology could deliver and they’re using a
Practical use case at the time which was cryptocurrencies but actually we focus as an organization on on the actual underlying blockchain and actually what that could achieve for our Production Services and capabilities but actually what most importantly could achieve for the end client so the consumer of the
Information or data is provided within the sources that we provide so blockchain for us was really important because it created one truth that could carry from Source issuance all the way through to Incline and be trusted so now you can employ data to the incline with without having to reconcile that
Information they can have a real truth the provenance and governance that information and the products and services you can build from having Reliance on data are much stronger than trying to Source information and and having to attest that yourself so we’re not saying itself offered an opportunity
For us to think about efficiency but really think about deploying data from source to the client more quickly but with with guaranteed certainty as well okay I think you said the start of 2014-15 and then you went to Market with a product 2017. yeah our first product
So it seems really fast yeah it was quite fast for a bank and quite fast for a new technology but our Challenge from the board was show us what the technology can do so we really looked at our first sort of use case was a private
Equity so it was a very um disjointed process not very transparent so actually the the data transparency of blockchain would allow us to take a legal agreement from uh from a GP and in private Equity codify that and put that on an immutable record and deploy that to an LP or an
Investor so we actually looked at the end-to-end value chain of that particular solution and deployed that within sort of 18 months of the initial conversation now for us we were a particularly big player in a certain jurisdiction so we work with a regulator and a little line called Guernsey or for
The UK which is a big fun center and we work with a regulator and we work with the legal teams there and deployed that technology to help bring funds onto platform that allows the transparency at the LPN but also announcing some efficiency for the GPS well so with that
Platform sitting with about four billion dollars worth of assets on it now as well so that started out early but it allows to demonstrate both the efficiency side how you work well the regulatory barriers we’re deploying a new technology and new new distributed Ledger technology um but but also it gave us some
Efficiencies within the administration function as well as that data transparency so it’s a really exciting use case and we got to The Mark with a real good win to start with which is always good but at least also the Northern Trust could buy into the concepts of the values type
Um and just show me don’t tell me that a really important to show that value what is the client feedback then because I I’ve gone to many of these conferences uh I think around the time you were starting this I was working at American Banker at the time just watching the
Race between the startup side and the financial institutions and you know were they going to build or buy or you know do something in-house or partner I’ve watched the race to get ahead and you know the need to stay innovative are the clients feeling it or is this
Something that’s you know purely looked at in-house by the firms how are the clients feeling it have they responded to it you talk to them about it yeah so from a client perspective and I know you look at our clients I don’t think clients really care about type organization and digital assets
Um but I was hoping um but we do and I think they care about outcomes rather than the assets themselves and how they’re stored and how they’re moved so if you really look at our journey over nine years what we’ve certainly realized is what the client wants is the ability to have
Liquidity in a market they want access to assets that allow them to buy assets that might allow them to make decisions or what assets to buy so I think if you look at the deployment of tokenized assets the upside is is being able to provide more information and more data
So the clients make decisions proactively about their Investments or demonstrate the types of Investments they’re making so if you as often tokenize a green Bond if you really link the attributes of that green Bond and maybe the debt that’s raised for projects and services off the back of
That debt raise for example you can actually start to flow the reporting through the asset class itself back to the investor so they can demonstrate through things like ESG value because it’s actually immutable from from where they purchase the asset so it’s the added value that comes with the data
That they get from the issuance so they’re more interested in insights and more interesting information more interested in understanding the the corporate or company they’re investing in is actually living up to their responsibilities not by attestation but by actual fact the data being fed into particular models and assets and
Algorithms so I think the evolution of this particular tokenization is more about the data story rather than the technology department and the efficiency now while on the ground crypto World also spoke with Elliot Hahn who leads crypto blockchain and digital assets investment banking at Canter Fitzgerald about his take on tokenization
I would say the attendance level it’s a lot higher than I had expected just given everything that we’ve been seeing in the crypto space you know we’ve obviously to use a lack of a better phrase gone through a crypto winter I was at the consensus conference last
Week in Austin and I would say attendance was significantly down you can just see it in flights were cheap but hotels were cheap you could actually get a hotel room some kind of attendees too it is it definitely is um but they do have an Institutional day and that
Was the first day and I was there just for that and even that day there was significant um attendance down but here I feel that the attendance is pretty high up um you know pretty similar to what levels of last year one two I think there should still be a lot of
Enthusiasm positivity it isn’t this negativity who I’ve seen at other other events and conferences I’ve been to In the last last quarter interesting so tell me a little bit just get our viewers kind of caught up on counter Fitzgerald’s uh you know participation in the space
To date and where it’s going yeah so Canada’s taking this view that we we feel that blockchain crypto and digital assets is definitely the way forward especially in the fintech space there’s a lot of different areas within it that we want to participate in everything
From what we like to say on one end the hard infrastructure the Bitcoin miners the crypto exchanges all the way to the other under the Spectrum that’s the nft the web 3 metaverse Type companies and everything in between and that’s what we like to call maybe the traditional fintech payment companies online lenders
That have a blockchain rail involved and so I lead our investment banking coverage here um based out here in the Bay Area but obviously we’re focused all throughout the US and as well as International and reason we want we’re here is one to get to get a little bit more
Um start up the conversation better with investors to understand what are their takes what are their thoughts post everything that’s happened in the last two quarters of last year two also to see what kind of what are some of these new and up and coming companies you know everyone always talks about whenever
There’s a downturn that’s the time where a lot of people are building and it’s always good to learn about these companies earlier earlier not just from Canada’s perspective but also so we can help our clients to understand one what are some of the competition that’s out there to what are some of their
Complementary services and products that could they could be working with and also three maybe there’s m a JV Partners as well so I would say in Earnest we’ve probably been doing this for about two years now um you know I think it was a space that as we’re still waiting for regulation to
Play out we’re slowly dipping our toes in it but I think you know we’re seeing that there’s a lot more maturity coming into the space regulation is still working its way through but we feel that you know it will get to the point where everyone is um you know protected but I
Think from our perspective you know we’re focused more on the institutional aspects versus the retail so we think a lot of the you know the rules are already in place for institutions the institutions are playing by the rules so we feel that this is the space that we
Should get into early and this is something that we think we want we see a long-term benefit for not just for us but the rest of people in the industry and also obviously in the broader blockchain crypto industry so it sounds like one of these use cases
That’s building in uh you know I I want to say bear Market times but clearly crypto’s in an uptrend this year is tokenization it’s what this whole conference is talking about is is that something you’re seeing is something that’s going to be born out of this period or are there other opportunities
For institutions that you’re also looking at that are kind of bubbling to be concerned so I I think um you nail it on the head I think the Baseline is going to be tokenization once you have these assets that are tokenized there’s so many different use cases for them you
Can put derivatives on them obviously you can open it up to the masses whether you’re tokenizing something as simple as maybe real estate and I know some of the panelists have talked about that to other use cases out there even Securities as well so I think what we’re
Seeing is that you know there’s a lot of excitement in this space right now there are a lot of companies here that are looking at it from many different perspectives and angles and I think that’s what we’re trying to learn and understand more is what what are these
Other use cases that aren’t necessarily obvious and that’s I think where we’re seeing some very interesting um aspects come out of that all right that’s all for crypto world today but we’ll have much more from digital assets week in San Francisco in tomorrow’s show we’ll see you then
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