How Apple & Google Transformed into a Systemic Risk to the US Stock Market

According to Credit Suisse strategists, the “reversal of fortunes” seen by tech behemoths Apple and Google-parent Alphabet are dragging down the performance of the overall US stock market. The S&P 500 forecast has been “skewed” by companies suddenly transitioning from high growth forecasts to much more modest outlooks.

This Bad Apple Could Roil the S&P 500

An “unusually high” number of big US companies have revised previously-bullish earnings forecasts downwards. These include Alphabet and Apple, as well as Exxon Mobile, GM, Micron, Chevron, and ConocoPhillips. Oil and technology companies are also pushing US stock market growth downward.

The S&P 500, according to Refinitiv, will now only grow by 0.3% in the first quarter of 2019 compared to 23% in all four quarters of 2018. Overall S&P 500 growth for 2019 is now expected to be 4.5%.

Apple, Alphabet, and Others See a Reversal of Fortune in 2019 Impacting the US Stock Market | Source: Credit Suisse

There have only been three other times since 1990 that so many companies have seen such a reversal of growth. Per the chart above, 71 quarters have seen two or fewer top 20 growth contributors move to the worst-performing segment. Thirty-five quarters have seen less than a handful of companies reverse so rapidly, and just three have seen more than seven do so, including the first quarter of 2019.

Cited in CNBC, Patrick Palfrey, a US equities strategist at Credit Suisse, says:

“For the typical company, are they seeing a problem? The answer is not really. You can get a few bad apples distort the underlying trend.”

US Stock Market at Mercy of Mega Companies and Tax Cuts

Palfrey believes other companies on the S&P 500 are growing at between 5% and 6%, adding:

“There is this massive skew for these mega cap companies that had really great years, over the past several years and in 2019, the trends are uninspiring for them.”

Credit Suisse also points to the importance of Trump’s recent tax cuts in skewing stock market growth. The cuts added 7% to 8% to earnings growth in 2018 but are now acting as a headwind, dropping profit growth by 1%. Benefits included last year, like deductions for capital expenditures, are no longer available.

Breaking Down Growth Struggles at Apple and Google

Apple reported profit growth of over 40% in the third-quarter of 2018 and is now expected to see a 12.3% decline. Alphabet’s profits grew 23.9% in the third-quarter of 2018 but are likely to fall 21% in the first quarter of 2019.

S&P 500 (Blue) Apple (Red) Alphabet (Orange) Performance Over the Last Year Source: TradingView

The two have moved from being at the top of the S&P 500 for growth to the bottom 20%. They are joined by Exxon Mobil – dropping from 51% growth to a 14.5% decline – and Chevron, dropping from 148% growth to a 21% decline for the same period.

Apple’s ability to swing the US stock market has never been in doubt. Its shocking sales forecast revision in early January dropped its own share price 10% and sent the Dow Jones Industrial Average plummeting by a whopping 500 points. Apple and Microsoft are still battling to be America’s largest company by market value and are closely followed by Alphabet and Amazon.

These Silicon Valley giants helped propel the US stock market to record highs in 2018, but as the economy moves deeper into 2019, they may prove to be its greatest foil.


Source
Author: Melanie Kramer
Image Credit: Featured Image from AP Photo / dapd, Martin Oeser

Only 3% of Americans Bought Something With Bitcoin Last Month, A 5-Year Bet Reveals

A recent podcast by Planet Money, reflected on a bet made 5 years ago between Bitcoin bull and venture capitalist Ben Horowitz whose firm has made investments worth over USD 50 million into crypto and financial journalist Felix Salmon, paints a peculiar angle on Bitcoin adoption.

The bet which hinged on the adoption state of Bitcoin in 5 years as currency, had Horowitz predicting that it would have revolutionized the face of e-commerce such that 10% of people living in the US would use the currency for frequent online purchases. This happened back in 2014 when Bitcoin’s price wavered around USD 360 to USD 760.

Meanwhile, Salmon was confident about his bet, stating how Bitcoin’s value will indeed increase but not because of its use but rather based on a speculative rise in value. He cited how those who bought Alpaca socks using Bitcoin would regret, noting the price increase, and would have preferred sitting on it rather than spend it.

A sample pool survey was recently conducted to know who had won the bet – gauging how many Americans currently use Bitcoin for everyday online purchases. The bet was concluded recently, having to declare Salmon the winner, as only 3% of 900 Americans had actually bought something with Bitcoin in the past month.

Real Adoption

The mainstream real adoption of Bitcoin can be approached from three angles: One, where people who actually buy the coin become long term holders (store of value), hoping the price will reach astronomical highs and cash in on the ‘patience-profit.’ The second, where cryptocurrency adoption has been heavily facilitated by payment infrastructures such as merchant adoption, and the increased installation of Bitcoin ATM kiosks. The third has to do with the introduction of sophisticated markets such as futures contracts and exchange-traded funds (ETFs) for institutional investors.

Regardless of the adoption route, most of the early sentiments were founded upon hysterical predictions based on the assumptions that Bitcoin and its underlying technology had come to replace legacy financial systems and hence prices would go as high as USD 50,000. However, these sentiments have been counterbalanced by a rather economically bearish one that renders the initial logic as heavily flawed.

The outcome is a juxtapose of a computer science-based backing of the blockchain, Bitcoin, and cryptography, as against economic assessment of currency functions and financial asset manipulation. More so, many now rely on the economic aspects for further adoption at this point. This is the case with the constant lookout for institutional grade investment opportunities like those of the Bakkt; in the hopes of repeating what CME Group and CBOE’s Bitcoin futures contract did in late 2017.

It is clear though, that back in the early days of the industry’s development, very important structures such as scalability, and regulations were of little concern, and may have consequently cost the industry years ahead of a full-blown mainstream adoption of Bitcoin.

Over time, many influencers have taken turns on the prediction wheel; John McAfee had his predictions set to USD 1 million per Bitcoin; Thomas Lee thought at best case scenario, it would reach USD 25,000 in the past year but later on blamed regulatory uncertainty for falling short. So far, none of the near-term predictions have materialized. If anything, Bitcoin as a currency has struggled to maintain upward price projections, and as a store of value, it’s really still too soon to tell – 10 years into its development.

One thing is certain, treating Bitcoin like some gambling chip is a lot riskier than the real deal. While the tech does hold promise and has ushered in prospects of a great financial revolution, the subject of adoption will apparently continue to be an important one many years from now moving forward.

On the tech side, industry adoption has been growing consistently with legacy systems fine-tuning system processes using the distributed ledger.


Source
Author: Manuel
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American Companies Can Now Settle Payroll Taxes In Cryptocurrency via Bitwage

International cryptocurrency payroll service provider Bitwage has announced that it has partnered with Texas-based Simply Efficient HR. The move will allow companies to pay W2 employee and payroll taxes in all 50 U.S. states, plus Puerto Rico, using BTC and ETH.

 

Bitwage and Simply Efficient Join Forces

With Bitwage’s solution now out of beta, American employees are able to choose any percentage of their wage to be in USD or cryptocurrency. To participate, a company needs to sign up to Bitwage, reach out to support for Payroll & HR services to receive personalized account management from the Simply Efficient HR team, and then add the account on Bitwage. Simply Efficient HR invoices companies through Bitwage for USD needed to fund payroll taxes and employee payrolls and the company accepts invoice and fund payrolls in BTC or ETH.

CEO of Bitwage Jonathan Chester commented: “As the leader in cryptocurrency payroll solutions, we are excited to continue to push the adoption of real use-cases within the industry. Together with Simplexity, we hope to close the financial loop within the cryptocurrency industry and continue to make bitcoin and other cryptocurrencies a part of everyday life.”

American Companies Can Now Settle Payroll Taxes In Cryptocurrency via Bitwage

Bridging the Gap to the Traditional Financial System

The partnership has been live in beta mode since November, with its first customer the peer-to-peer exchange Paxful. “Bitwage bridges the gap between bitcoin and the traditional finance system,” Hayel Abbassi, Paxful Controller, said. “As a company that earns 100% of revenue in bitcoin, we are always looking for service providers who will accept digital currency. Paxful has a significantly sized team in the states and we need to pay them as employees on payroll, not as contractors. Bitwage has recently formed a partnership with a traditional payroll company who integrates into their platform to provide these services. Paxful simply sends bitcoin to an address, and our employees receive net checks with the proper federal and state taxes withheld.”

American Companies Can Now Settle Payroll Taxes In Cryptocurrency via Bitwage
W2 Tax Form

According to the announcement, U.S. Bitwage clients are also able to pay for benefits such as health insurance, as well as HR compliance services. Companies around the world are able to use their crypto holdings to pay local vendors in the U.S., E.U., U.K., Brazil, Philippines, India, Mexico, Argentina and other regions.


Source
Author: Avi Mizrahi 
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Kashkari: Federal Reserve Doesn’t Need to Protect Investors

Another Federal Reserve president has spoken out on interest rates. Neel Kashkari says there is no need for interest rate hikes right now but that the US Federal Reserve does not exist to protect investors.

Though the stock markets are exhibiting “nervousness,” says Kashkari, investors have to figure out what to do next.

We are not here to protect investors from losses. This is a capitalistic economy we live in and if investors take risks, they should bear the consequences of those risks.

But, says the Minneapolis Federal Reserve chief:

We pay attention to the stock market.

No Reason to Apply Economic Brakes

Kashkari, echoing Atlanta Federal Reserve President Raphael Bostic’s recent comments, believes it’s time to stop interest rate hikes:

I don’t see any reason that we need to tap the brakes pre-emptively on the economy, let’s let the job market continue to strengthen and wages and inflation pick up and we can always raise rates then.

Bostic said last week that, amidst uncertainty:

The appropriate response is to be patient in adjusting the stance of policy and to wait for greater clarity about the direction of the economy and the risks to the outlook.

After a slew of interest rate hikes in 2017 and 2018 and a declining equities markets at the end of 2018, the US Federal Reserve took the pressure off the markets early this January. Federal Reserve Chair Jerome Powell said:

We will be patient as we watch to see how the economy evolves.

The markets responded, with five days of consecutive gains.

S&P 500 (Blue) Dow Jones Industrial Average (Red) and Nasdaq (Yellow) Performance Over the Last Year | Source: Trading View

Federal Reserve United and Independent

Federal Reserve Vice Chairman Richard Clarida has since said the Federal Reserve could be “very patient.”

Kashkari’s comments on investors come in defense of US President Donald Trump’s attacks on the central bank. He says the Federal Reserve is “united” in its independence and focus on data.

Federal Reserve Chair Powell knocked back Trump’s criticisms as the market struggled in late 2018, saying he would not resign. The Federal Reserve is an independent body, and despite Trump’s comments, he cannot fire Powell or force him to quit.

With further interest rate hikes in the near future now very unlikely, investors appear more confident despite other concerns. The Dow Jones Industrial Average ended the day up 141 points or 0.59%.


Source
Author: Melanie Kramer  
Image Credit:  Featured Image from Flickr/ProPublica

Dow Opens to Minor Monday Gains as US-China Trade Talks Ramp up

The Dow Jones Industrial Average opened to minor gains on Monday morning as the US stock market continued to wait to see whether renewed negotiations between the world’s two largest economies would bring an end to the US-China trade war.

Dow, S&P 500 Teeter as World’s Largest Economies Meet for Trade Talks

As of 9:32 am ET, the Dow had gained 38.27 points or 0.16 percent , while the S&P 500 added 0.08 percent to its impressive Friday run. The Nasdaq, which had been the worst performer in pre-market trading, fought its way back into the green for a 0.27 percent gain.

Dow (blue), S&P 500 (red), and Nasdaq (orange) futures mostly traded sideways ahead of Monday’s opening bell.

Those muted movements marked a severe departure from Friday’s close when all three indices punctuated the week with massive rallies. The Dow rose 746.94 points or 3.29 percent to close at 23,433.16, and the S&P 500 closed at 2,531.94 for a daily gain of 3.43 percent. The Nasdaq managed to surge even further, gaining 4.26 percent ahead of the closing bell.

In what has quickly become the “new reality” for investors, the stock market has been intensely volatile in recent weeks. Now, though, it appears that the Dow and other major indices are waiting for more details on renewed US-China trade talks to determine whether it will build on Friday’s recovery or slip back into the red.

Will US-China Trade Talks Reach a Resolution?

On Monday, Deputy US Trade Representative Jeffrey Gerrish led a delegation to China for two days of trade negotiations. The first day of talks brought an unexpected visit from Chinese Vice Premier Liu He, the country’s top economic policymaker and the direct head of the trade discussions.

The standoff between the two countries has begun to make itself known in the markets, with tech bellwether Apple forced to slash revenue guidance due to poor fundamentals in China, the first major indication that US companies stand to take severe losses if the “tariff truce” expires on March 1 without a new trade agreement.

Some analysts have speculated that a weak stock market could force US President Donald Trump’s hand, but US Trade Representative Robert Lighthizer has reportedly been adamant that he wants to prevent Trump from cutting a deal that includes “empty promises” from the Chinese.

Consequently, it seems like traders are holding their fingers off the trigger until more details from the trade talks emerge. Liu’s appearance at the talks is likely a positive sign, though it’s still not clear from reports how great a role he played in Monday’s discussions.

Top Movers

Toymaker Mattel (MAT) extended its Friday rally, rising 4.9 percent to headline the S&P 500. Micron Technology (MU) and Dollar Tree (DLTR) led the Nasdaq, with the former rising on analyst predictions that MU shares have “bottomed out” and the latter popping in response to reports that activist investment firm Starboard Value wants to shake things up at the discount retailer.

PG&E Corp (PCG) was far and away the worst performer in either the Dow, S&P 500, or Nasdaq following the opening bell, with shares plunging 22 percent on reports that the California utility company faces a minimum of $30 billion in liability for fires in 2017 and 2018, including the Camp Fire — believed to be the deadliest wildfire in California’s history.

Government Shutdown: Week 3 with No End in Sight

The partial shutdown of the US federal government has now entered its third week.

On the domestic front, the markets could soon begin to see the impact of the partial government shutdown, which has now entered its third week with no end in sight.

The Democratic-led House of Representatives and the Trump Administration continue to spar over funding for the president’s proposed border wall, with neither side caving to pressure to strike a deal to fund the nine federal departments that ran out of money on Dec. 22. An estimated 800,000 federal employees have been placed on unpaid furlough or forced to work without pay, leading to mass callouts in the Transportation Security Administration (TSA) and other high-visibility departments.

As of Monday morning, the 16-day shutdown is tied for the third-longest in US history, and the number of federal employees refusing to show up to work will only increase as people grow tired of working without pay or seek temporary employment to help cover their monthly expenses.

US Taxpayers Get Cold Shoulder from IRS amid Shutdown

A prolonged shutdown would have a much wider impact moving into tax season, as the Internal Revenue Service (IRS) is one of the agencies currently operating at limited capacity. While US taxpayers must still submit their annual tax returns and estimated quarterly tax payments, the IRS said that it may delay refund processing if filing season opens with the shutdown still in force.

More than just a frustration for US residents, delayed refund processing could deprive the economy of a regular source of consumer spending since many taxpayers use their annual refund checks to fund or place down payments on vehicles and other large purchases.

Price Charts from TradingView.


Source
Author: Josiah Wilmoth
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US Justice Department Probes Tether for Bitcoin Price Manipulation: Report

The US Department of Justice (DOJ) has reportedly opened a probe into whether Tether, the eponymous issuer of the USD-pegged cryptocurrency stablecoin tether (USDT), has engaged in illegal market manipulation to prop up the bitcoin price.

Justice Department Investigates Tether for Crypto Manipulation

Citing three people familiar with the matter, Bloomberg reports that federal prosecutors — who had already opened a broad investigation into the cryptocurrency market — have narrowed on Tether and Bitfinex, the crypto exchange giant with whom it shares a management team.

Tether, whose crypto token has a circulating supply of 1.8 billion, alleges that every unit of USDT is backed by $1.00 stored in a company-owned bank account. The firm’s current banking partner — there have been almost too many to list — recently published a letter indicating that it was holding enough USD to cover the outstanding USDT, but some lawyers stated that the letter was written in such a way to absolve the institution, Deltec Bank, from any liability regarding its veracity.

Most tethers enter and exit circulation by way of Bitfinex, who always values USDT at $1.00 regardless of its price on the global market. Critics, including researchers at the University of Texas, have alleged that Tether at least occasionally operates a fractional reserve bank, pumping unbacked tethers into circulation to stabilize the bitcoin price and then selling enough BTC to rectify its reserves.

The company has denied these allegations, and industry stakeholders such as Mike Novogratz have said that Tether’s ability to redeem more than $1 billion worth of USDT when the cryptocurrency fell below its supposed $1.00 peg in October is a strong indication that the token is fully-backed by USD. Subsequent research from the University of Queensland Business School further argued that tether grants had no impact on the bitcoin price.

Justice Department, CFTC Will Coordinate Probes

Bloomberg had reported earlier this year that the Commodity Futures Trading Commission (CFTC) had sent subpoenas to Tether and Bitfinex last December, and today’s report indicates that the DOJ and CFTC are coordinating their efforts. Professor John Griffin, one of the University of Texas researchers who authored the paper alleging that tethers are used to manipulate the bitcoin price, is said to have briefed the CFTC on his findings.

Crucially, though, the report notes that, even if illegal activity has occurred on Bitfinex, the exchange operator’s executives may not necessarily be implicated.

“It couldn’t be determined whether government officials are solely investigating activity that occurred on Bitfinex or if exchange executives are suspected of illegal behavior. Neither the Justice Department nor the CFTC has accused anyone of wrongdoing, and authorities may ultimately conclude that nothing illicit occurred.”

It’s unclear to what extent, if any, the Justice Department’s probe into bitcoin price manipulation has put downward pressure on the crypto market, which is now trading below $150 billion after taking $60 billion in losses in just seven days.


Source
Author: Josiah Wilmoth
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Bitcoin Accepted Here: Major US Museum Now Takes Crypto Payments

Great Lakes Science Center, a large museum and educational facility in downtown Cleveland, Ohio, will begin accepting Bitcoin as a payment method beginning November 13.

Kirsten Ellenbogen, the CEO of Great Lakes Science Center, said that the institution decided to accept crypto to facilitate the growth of the local blockchain ecosystem.

“There is a lot of excitement around the conference. Accepting bitcoin is just a small part of the momentum to grow a blockchain ecosystem in Cleveland,” Ellenbogen said.

The integration of crypto by Great Lakes Science Center comes after Hublot, a Swiss luxury watchmaker, successfully integrated Bitcoin to sell 210 pieces of its limited edition Bitcoin-themed sports watch for $25,000 per piece, generating $5.25 million in revenue purely through sales conducted using BTC.

Third Museum in the US to Accept Bitcoin

Museum of the Coastal Bend in Texas and St. Petersburg Museum of History in Florida have been accepting BTC for quite some time, and Great Lakes Science Center is officially the third museum in the US to accept cryptocurrencies as a payment method.

In 2013, Museum of the Coastal Bend first integrated Bitcoin, as CCN reported. At the time, a museum spokesperson said:

“I have to admit, I’m skeptical that anyone will visit and use BTC. But it doesn’t cost us anything to try, and it’s pretty cool to say that we’re the first. Also, admission is pay-what-you-want, in case anyone was wondering how many of their hard-earned BTC they would need to spend here.”

Fast forward five years, Bitcoin has become a major store of value worth over $110 billion that is acknowledged as a proper asset by large-scale institutions like ICE, Fidelity, Nasdaq, and the New York Stock Exchange.

Great Lakes Science Center

According to Ellenbogen, visitors can purchase admission tickets using cryptocurrencies and visit the National Aeronautics and Space Administration (NASA) Glenn Visitor Center. The newly launched mobile app utilizes augmented and virtual reality to provide a new experience to visitors.

“Last year we launched our mobile app that uses augmented and virtual reality to allow guests to experiment with flames in space and test spacecraft designs re-entering Earth’s atmosphere when they visit the NASA Glenn Visitor Center, and now they’ll be able to use their phone to pay for their admission using Bitcoin.”

The integration of Bitcoin is the second major initiative of the institution following the launch of a new mobile application that utilizes augmented and virtual reality to allow visitors to better experience, study, and evaluate the work NASA is leading.

Cryptocurrency Integration is a New Trend

As seen by the successful initiative of Hublot and Great Lakes Science Center, the integration of major cryptocurrencies like Bitcoin has become a new trend in the global market.

The international user base of Bitcoin, as well as a rapidly growing number of cryptocurrency-using millennials, frequently seek for ways to transact using digital assets at stores and merchants, and the integration of Bitcoin, which does not cost anything for the merchants, has become an efficient way of targeting consumers in the cryptocurrency market.


Source
Author: Joseph Young
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U.S. Investors Divided on Outlook for Cryptocurrency: Survey

Americans are split almost evenly on the topic of whether or not cryptocurrency represents a promising investment class with a bright future.

A new Clovr research report sampling over 1,000 American adults found that roughly even segments of the U.S. population have strongly positive and apprehensive, bordering on hostile, views toward crypto assets, even as the total percentage of the population that is aware of cryptocurrencies continues to grow steadily. The report gathered responses to a number of questions from 1,004 Americans aged between 18 and 80 via Amazon‘s Mechanical Turk platform. The average age of survey respondents was 36.05, with a standard deviation of 11.86 years.

The survey shows that crypto awareness is longer a small niche, with 76 percent of the people surveyed professing their knowledge about it, and a further 20 percent indicating that they “sort of” know what cryptocurrency is. While these figures look good, a cursory dive into the data shows that the 76 percent drops to 62 percent when asked if they would be comfortable to explain what cryptocurrency is to others.

According to the survey, 69.8 percent of people expressed uncertainty about the cryptocurrency market while 28.1 percent are hopeful about crypto adoption and positive movement in the market. While 31.5 percent are excited about its usage, another 32.9 percent are confused, which is an almost even split.

Source: Clovr

A possible reason for this could be the fact that many people first experienced cryptocurrency as a speculative asset during last year’s record-breaking bull run, which made some see crypto as a means to get rich quickly. The bear market of 2018 soon followed, however, and burnt many fair-weather investors, coloring its perception by the general public. This is also reflected in the reasons given for investing or not investing in cryptocurrency, with 51.6 percent of respondents saying they would invest because of the possibility of outsized investment returns and 58.1 percent saying they would not invest because the crypto asset class is too risky.

The report also shows that crypto investment still remains an overwhelmingly male-dominated activity, with 43 percent of surveyed men having invested in a cryptocurrency before, against 23 percent of women. Unsurprisingly, millennials also led the generational statistics of cryptocurrency investors, with 41 percent of surveyed millennials responding affirmatively to the question, compared to 24 percent of Gen X respondents and 18 percent of baby boomers.

The main takeaway from the survey is that the subject of cryptocurrencies is still one of uncertainty and ignorance among many Americans, with many people possessing little more than a superficial understanding of what cryptocurrencies are.

The full Clovr report is available here.


Source
Author: David Hundeyin
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Crypto-Backed Loan Provider SALT Expands to 35 US States

Cryptocurrency-backed loan provider SALT Lending announced it has expanded into 20 new U.S. states on Wednesday.

LIONBIT

The firm, which allows users to borrow cash against their cryptocurrency holdings, is now available in 35 states, including Washington D.C.

Also revealed today is a new tech platform for SALT clients, which the firm says includes updated tools for borrowing funds and faster transactions, as well as a new member loyalty program.

The firm’s chief executive, Bill Sinclair, who took up his post last month, told CoinDesk that the process of expanding to new states is complicated, and that the company’s legal team has been working with regulatory experts to ensure that the loans it provides fall within each state’s individual laws.

“SALT loans are and will be structured within the laws, regulations, and guidelines provided by each jurisdiction in which the loan is offered,” he said.

As such, the platform is newly available to residents of Connecticut, Florida, Illinois, Kansas, Texas, Maryland, Michigan, Wisconsin and Maine, among others.

The company is currently moving its current users to the new platform, Sinclair said, adding that, for the rebuild, “we started with some key community leaders and worked their feedback into the nuances of our technology.”

TIP

“The first borrowers to get loans in the new system were those who previously applied in areas in which we were not approved to lend and were still interested in a SALT loan,” he said.

To further attract new members and retain existing clients, the startup today also unveiled a new member loyalty program. Called Proof of Access, the scheme lets customers modify their loan conditions using the firm’s own token (also called SALT), according to Sinclair

New clients become members by depositing at least one SALT token onto the company’s platform, and can then stake their tokens to adjust their loan interest rates.

Sinclair said the firm plans to continue developing its platform, and in the future plans to introduce micro-loans and qualified custody products, alongside international expansion.

SALT will also be looking at adding new blockchain tokens to be used as collateral, he said, explaining:

“As blockchain assets continue to grow in abundance and popularity, technology will need to pivot accordingly. … Opening doors for our potential borrowers who may have selected different investments than bitcoin and ethereum will be a key differentiator for SALT in the future.”


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Nikhilesh De 
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Congress Is Now Holding Two Crypto Hearings This Wednesday

Congress is set to hold not one but two separate hearings related to cryptocurrencies on Wednesday.



Last week, CoinDesk reported that the House Committee on Financial Services will gather this week to discuss the subject, with this particular hearing honing in on the question of crypto as a new form of money. A memo published since that news first broke notably states that members will examine “the extent to which the U.S. government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies.”

That same day, the House Agriculture Committee will hold a hearing entitled “Cryptocurrencies: Oversight of New Assets in the Digital Age.” In a statement, chairman Michael Conaway explained that the hearing seeks to “shed light on the promise of digital assets and the regulatory challenges facing this new asset class.”

It’s a noteworthy statement, declaring that at least some in the U.S. national legislature hold the view that cryptocurrencies constitute a new kind of asset.

“Our committee has a deep interest in promoting strong markets for commodities of all types, including those emerging through new technology,” Conaway added.

Together, the hearings represent a double-header of sorts, and CoinDesk has confirmed both hearings will be live-streamed from Capitol Hill, Washington, DC. The Agriculture Committee hearing will take place at 10 a.m. EST while the Financial Services Committee’s hearing will occur at 2 p.m. EST.

According to the Financial Services Committee memo, the witnesses set to appear are: Dr. Rodney Garratt of University of California Santa Barbara; Dr. Norbert Michel of the Heritage Foundation’s Center for Data Analysis; Dr. Eswar Prasad, a senior fellow at the Brookings Institution; and Mr. Alex Pollock, a senior fellow for the R Street Institute.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Christine Kim 
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