The US Federal Reserve kept its key interest rate unchanged in a range of 5% to 5.25%. ohThe long-awaited break has arrived! It was the first time the central bank had put the rate on hold after ten consecutive increases, which began in March 2022.
However, it was also indicated that the bank will probably raise the rate two more times this year. Easing inflationary pressures was a major factor behind the Fed’s decision.
US headline annual inflation fell in May, the lowest level since March 2021. LCore inflation, which excludes energy and food prices, has barely changed since the beginning of the year, partly because housing-related costs are rising. Despite higher mortgage rates, home prices continue to rise. I mean, the pause is a good thing. But it is not necessarily final. It is not very prudent to act as if the future were written. Because here anything can still happen.
Given the high level of inflation in the euro area, the European Central Bank once again increased interest rates by 0.25%. This puts its deposit facility at 3.5%, the highest since 2001.
US authorities have sued the two largest cryptocurrency exchanges for alleged irregularities. This has caused some clients to withdraw their funds and others to sell their bitcoins. However, many investors have been unfazed by the news, despite the fact that the SEC has filed serious allegations against Binance and Coinbase.
Now, let’s talk about the top crypto news of the week according to Cointelegraph in Spanish: This is not a news summary. This is an opinion article. The intention is to reflect on the following headlines in a skeptical and critical way. This is an article for free thinkers.
As already stated, the SEC sued Binance, the largest cryptocurrency exchange, for alleged violations of securities laws. Binance users did not sit idly by and withdrew more than $3 billion in 24 hours, according to Nansen, a blockchain analytics firm. This caused a net negative flow on the blockchains supported by the exchange. Could it be that users fear that the SEC will freeze Binance’s assets or that the exchange will not be solvent? Or is it that they just want to take advantage of market opportunities?
Either way, it seems that Binance is going through a bad time and that the trust of its clients has been affected. What will Binance do to get it back? And what will the SEC do to regulate the sector? These are some of the questions that remain in the air after this episode.
US Senators Propose Artificial Intelligence Bills to Promote Transparency and Innovation
Artificial intelligence (AI) is a technology that can have many benefits, but also risks and challenges. Therefore, toSome US senators have introduced two bills to regulate its use and encourage its innovation. The first seeks that the government is transparent when using AI to interact with citizens, and that they can appeal the decisions made by the AI. The second proposes creating an office to analyze global competition in AI and ensure that the United States does not fall behind countries like China. The senators say that AI is a strategic priority and that the rights and well-being of the people must be protected. Will these bills be enough to achieve it? Or will more need to be done to regulate AI ethically and responsibly?
US Senator Cynthia Lummis Steps Up Efforts to Regulate Crypto Amid SEC Lawsuits
Senator Cynthia Lummis is one of the few cryptocurrency advocates in the United States Congress. She wants the country to have a clear and favorable regulatory framework for the sector, which is under scrutiny by the SEC. Lummis says that she is working on a legislative proposal that would allow citizens and companies to own and trade digital assets without fear of retaliation. He also says that he has managed to avoid a 30% tax on cryptocurrency mining that the president wanted included in the debt limit deal. Will Lummis be the savior of cryptocurrencies in the United States? Or will she be a lone voice amid the regulatory hostility?
Binance.US Opposes SEC “Emergency Motion” To Freeze Its Funds, Declaring “All SEC Claims Are Baseless
The SEC wants to freeze the funds of Binance.US, the American exchange of Binance. The SEC accuses Binance.US of violating securities laws by offering cryptocurrencies that are securities without registration or license. Binance.US opposes the SEC’s emergency motion, saying all of its claims are baseless. Binance.US claims that the SEC has not identified any securities trading on its platform and that the restraining order would kill its business and harm its clients. Binance.US also says that it has been cooperating with the SEC in an investigation since December 2020 and that the motion is a ploy to gain an advantage in the litigation. The hearing on the restraining order is scheduled for June 13. Who will win this battle between the regulator and the exchange?
The European Union begins the countdown to cryptocurrency legislation and adds the MiCA framework to the official journal
The European Union wants to regulate cryptocurrencies and has published the MiCA framework in its official journal, which means Crypto Asset Markets. The MiCA is a bill that seeks to create common rules for cryptocurrency services and issuers in the EU. The MiCA aims to protect consumers, promote innovation and prevent money laundering and tax evasion. The MiCA will enter into force 20 days after its publication and will have a transition period of 18 months for member states to adapt it to their national legislation. The MiCA is part of the EU’s digital plan, which also includes other initiatives on digital identity, data and artificial intelligence. Will the MiCA be an opportunity or a threat for the cryptocurrency sector? How will it affect users and businesses?
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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