10j yang laluFed's Harker Says November Inflation Data Likely Distorted, Neutral Rate May Exceed Common EstimatesPhiladelphia Fed President Patrick Harker said on Dec. 21 that November's positive inflation reading may have been distorted by data collection issues tied to the government shutdown in October and early November, potentially understating 12-month price growth, BlockBeats reports citing Jin10. While the Bureau of Labor Statistics reported November CPI rose 2.7% year-on-year, estimates adjusted for measurement challenges place inflation closer to the widely expected 2.9% to 3.0% range. Harker added his main concern about cutting rates stems from his view that the neutral interest rate is higher than generally assumed and that the economy already shows momentum to sustain solid growth next year, though the neutral rate cannot be directly observed and must be inferred from economic performance.10j yang laluFed's Hammack Signals Preference to Hold Rates Steady Until Spring Amid Persistent Inflation ConcernsFederal Reserve official Beth Hammack said on Dec. 21 there is no need to adjust interest rates in the coming months after three consecutive cuts, BlockBeats reports citing The Wall Street Journal's Take On the Week podcast. Hammack opposed recent rate cuts, stating she is more concerned about persistently high inflation than potential labor market weakness. Her baseline expectation is to keep rates at their current level at least until spring, until clearer evidence shows inflation moving back toward the target or more substantial job market softening. While not a voting member on the rate-setting committee this year, she will be one next year.14j yang laluSen. Cynthia Lummis Will Not Seek Reelection in 2026Sen. Cynthia Lummis announced she will not seek reelection next year, drawing praise from crypto leaders including David Sacks, a16z's Collin McCune, and Greg Xethalis, BlockBeats reports. Lummis chairs the Senate Banking digital assets subcommittee, proposed the "Bitcoin Strategic Reserve Act," and has criticized former SEC chair Gary Gensler.19j yang laluUS Lawmakers Draft Digital Asset PARITY Act to Exempt Capital Gains Tax on Stablecoin Trades Under $200U.S. House members are drafting the Digital Asset PARITY Act, which would exempt capital gains tax on stablecoin transactions under $200, TheBlock reported on Dec. 21. The bill would also allow a five-year tax deferral for rewards from staking and mining activities.
1h yang laluMSCI Proposes Excluding Strategy and Digital Asset Treasury Firms from Global IndicesStrategy (MSTR.O), which holds significant Bitcoin reserves, faces potential removal from MSCI benchmarks and other major stock indices, a move that could reduce equity demand by up to $9 billion, Reuters reports. MSCI proposed in October to exclude companies whose digital asset holdings exceed 50% of total assets from its global benchmark indices, arguing such firms resemble investment funds, while affected companies contend they are operating businesses building innovative products and call the proposal discriminatory against the crypto sector. MSCI is conducting a public consultation and will announce its final decision on January 15, with analysts noting other index providers may follow if digital asset treasury companies are excluded.1h yang laluBrooklyn Court Charges Ronald Spektor Over Alleged $16 Million Coinbase ScamA Brooklyn court filed charges against Ronald Spektor on Dec. 20 over an alleged Coinbase impersonation scam totaling about $16 million, BlockBeats reports. Spektor allegedly posed as Coinbase support to defraud about 100 users and now faces 31 counts. Police seized about $105,000 in cash and $400,000 in crypto.1h yang laluEllison, Wang and Singh Accept SEC Penalties With 8–10 Year Officer BansThree former FTX executives—Caroline Ellison, Zixiao Wang and Nishad Singh—accepted final SEC penalties and agreed to settlements subject to court approval, CoinDesk reports. The settlements bar them from serving as officers or directors at other companies for 8–10 years (10 years for Ellison, 8 years for Wang and Singh) and impose a five-year conduct injunction. The SEC disclosed the agreements in a litigation notice on December 20.
2h yang laluFederal Reserve Proposes Limited Payment Accounts for Eligible Financial InstitutionsThe Federal Reserve on December 19 requested public comment on a proposal to offer limited "payment accounts" to certain financial institutions, BlockBeats reports. The accounts would allow eligible institutions to use the Fed's payment services for clearing and settlement while excluding broader benefits available to banks, such as interest earnings and credit facilities. Fed Governor Christopher Waller said the accounts could "support innovation" while maintaining payment system safety. Under the proposal, the payment accounts would be distinct from master accounts, would not earn interest or provide Fed credit facilities, and would be subject to balance caps; Waller first suggested the concept in October last year.2h yang laluFed Governor Waller Had "Strong" Interview with Trump for Fed Chair PositionFederal Reserve Governor Christopher Waller held what was described as a "strong" interview with U.S. President Donald Trump for the Fed chair position on Dec. 19, CNBC reported. BlockBeats relayed the report.2h yang laluHong Kong expects first stablecoin licenses early 2025, focusing on reserves and AML complianceHong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, said on Dec. 19 that authorities had received 36 stablecoin license applications from various sectors by end-September and expect to issue some licenses early next year, with priority given to robust reserve management, price stability and anti-money laundering measures, Hong Kong Economic Times reports. The requirements are designed to protect investors and create a clear compliance path that reduces ambiguities which could trigger trading conflicts, he noted, adding that the city's stablecoin ordinance took effect in August and the Hong Kong Monetary Authority stated in October it will review applications in line with the ordinance and relevant supervisory rules, with only a few licenses to be granted in the first phase due to higher entry thresholds. On virtual asset trading and custody service provider licenses, Hui said the government is working with the Securities and Futures Commission on detailed rules and plans to submit the regime to the Legislative Council next year, stressing the framework will cover key segments of the virtual asset industry and seek a balance between risk management and innovation. He reiterated that the Hong Kong government has carefully crafted these policies to foster innovation without undermining stability, while acknowledging that the People's Bank of China said last month that stablecoins carry risks of being used for illegal activities, which has drawn market attention to whether this could affect Hong Kong's direction on stablecoin development.
