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A cryptocurrency working group formed by President Donald Trump is set to release a report on Wednesday that is expected to outline the administration’s stances on tokenization and market-defining crypto legislation, among other issues critically important to the digital asset industry. Shortly after taking office in January, Trump ordered the creation of a crypto working group tasked with proposing new regulations, making good on his campaign promise to overhaul U.S. crypto policy. Wednesday’s report is a culmination of the task force’s work so far and its first public findings. In line with Trump’s January executive order, it will lay out what rules and laws should be enacted to advance the policy goals of the pro-crypto White House. Those include making sure that the Securities and Exchange Commission has a framework in place for firms to offer blockchain-based stocks and bonds, according to one person familiar with the discussions. The report is also expected to discuss the administration’s wish list for legislation Congress is currently debating to create broad regulatory guidelines for cryptocurrency, according to a second person familiar with the report. The working group led by Trump official Bo Hines is composed of several administration officials including Treasury Secretary Scott Bessent, SEC Chair Paul Atkins and Director of the Office of Management and Budget Russell Vought. The White House, Treasury Department and the SEC did not immediately respond to requests for comment on the report. “While there have been regulatory regimes in place that have maybe been piecemeal or have allowed the industry to grow in certain ways, the recommendations that we expect to see in the report will be a good roadmap for how to build out crypto as a continued important part of the economy going forward,” said Rebecca Rettig, chief legal officer at crypto firm Jito Labs. On the campaign trail, Trump courted crypto cash by pledging to be a “crypto president” and promote the adoption of digital assets. That is in stark contrast to former President Joe Biden’s regulators which, in a bid to protect Americans from fraud and money laundering, cracked down on the industry. The Biden administration sued exchanges Coinbase, Binance and dozens more, alleging they were flouting U.S. laws. Trump’s SEC has since dropped those cases. Tokenization, stablecoins, market structure Industry participants will be looking closely at what the report says about tokenization, the process of turning financial assetssuch as bank deposits, stocks, bonds, funds and even real estateinto crypto assets. Crypto firms and others have been increasingly discussing the prospect of tokenizing securities as a new way to facilitate trading. Coinbase recently told Reuters it was seeking a U.S. green light from the SEC to offer blockchain-based stocks. The SEC has yet to weigh in publicly on that request. Wednesday’s report is expected to recognize the need for the SEC to develop a framework for tokenization, according to a source familiar with the discussions, but the details of the language were not immediately clear. The report will also lay out what the White House would like to see from market structure legislation working its way through Congress, according to a separate person with knowledge of the report. The House of Representatives passed a bill called the Clarity Act earlier this month that would create a formal regulatory regime for crypto, and the U.S. Senate is considering its own version of the measure. Earlier this month, Trump signed into law a bill to create federal rules for stablecoins, a type of cryptocurrency pegged to the U.S. dollar. That move was hailed as a major win for the digital asset industry, and the White House has said it wants Congress to pass market structure legislation next, which would have far wider repercussions for the industry. The crypto sector has for years argued that existing U.S. regulations are inappropriate for cryptocurrencies and has called for Congress and regulators to write new ones that clarify when a crypto token is a security, commodity or falls into another category, like stablecoins. The president’s support for the crypto industry has sparked conflict-of-interest concerns, which at times have threatened to derail congressional crypto legislation. Trump’s family has launched cryptocurrency meme coins, and the president also holds a stake in World Liberty Financial, a crypto platform. The White House has denied that any conflicts of interest are present. Hannah Lang, Reuters
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E-Commerce
U.S. stock indexes are drifting on Wednesday after the Federal Reserve decided to keep interest rates where they are, a move that could upset President Donald Trump but that Wall Street was widely expecting. The S&P 500 was edging up by 0.2% in afternoon trading, coming off its first loss after setting all-time highs for six successive days. The Dow Jones Industrial Average was up 25 points, or 0.1%, as of 2:05 p.m. ET, and the Nasdaq composite was adding 0.4%. In the bond market, Treasury yields gave back some of their gains from the morning, when a report suggested the U.S. economys growth was much stronger during the spring than economists expected. It grew at a 3% annual rate, according to an advance estimate, a full percentage point more than forecast. But underlying trends beneath the surface may be more discouraging. Cutting through the noise of the swings in imports, the economy is still chugging along, but it is showing signs of sputtering, said Brian Jacobsen, chief economist at Annex Wealth Management. The data reinforced the dilemma facing Fed officials as they voted Wednesday on what to do with interest rates. They could have lowered rates, which would give a boost to the economy as Trump has been angrily calling for. But lower rates could also give inflation more fuel when Trumps tariffs may be set to increase prices for U.S. households. Trump on Wednesday announced a 25% tariff on imports coming from India, along with an additional tax because of India’s purchases of Russian oil, beginning on August 1. Thats when stiff tariffs Trump has proposed for many other countries are also scheduled to kick in, unless they reach trade deals that lower the rates. Fed Chair Jerome Powell has been insisting that he wants to see more data about how tariffs are affecting inflation and the economy before the central bank makes its next move, and he will speak shortly to offer more details about the decision. Two officials on the Fed committee did dissent in Wednesday’s vote, an indication that Powell may face increasing pressure to cut rates soon. Much of Wall Street expects the Fed to resume lowering rates in September. It’s been on hold this year after rates were cut several times late last year. The yield on the two-year U.S. Treasury note edged up to 3.87%, from 3.86% late Tuesday. It tends to closely follow expectations for what the Fed will do with its overnight interest rate. The 10-year Treasury, which also takes into account longer-term expectations for the economy and inflation, was holding at 4.34%. On Wall Street, stocks were mixed as most big U.S. companies continue to report profits for the spring that were bigger than analysts expected. Humana rose 10.3% after the insurer and healthcare giant reported stronger results for the spring than expected. It also raised its forecasts for profit and revenue over the full year. Video-game maker Electronic Arts climbed 7% after likewise topping Wall Street’s expectations. The company said it saw better-than-expected contributions from EA Sports and other games, and it will reveal its new Battlefield game on Thursday. Companies are under pressure to deliver solid profit growth. They need to in order to justify the big jumps in their stock prices during recent months, which have caused some critics to say the broad U.S. stock market looks too expensive. Trane Technologies, whose stock came into the day with a 27.5% gain for the year so far, tumbled even though it reported a stronger-than-expected profit for the latest quarter. The heating, ventilation, and air-conditioning company’s revenue came up short of analysts’ estimates, as did its forecast for profit in the current quarter. It dropped 8%. Starbucks swung between gains and losses after it reported a weaker profit than analysts expected, as it tries to turn around its operations. The company is hoping to boost its performance through improved store operations and new products, including a cold foam protein drink. Its stock was most recently up 0.4%. Palo Alto Networks fell 4.4% after saying it would buy CyberArk, an identity-security company, for $25 billion in cash and stock. CyberArk shares added 1.4%. In stock markets abroad, indexes were mixed across Europe and Asia. Hong Kongs Hang Seng fell 1.4%, and South Koreas Kospi rose 0.7%, in two of the bigger moves. By Stan Choe, AP business writer AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Category:
E-Commerce
The Federal Reserve left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Feds decision Wednesday leaves its key short-term rate at about 4.3%, where it has stood after the central bank made three cuts last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trumps sweeping tariffs. Powell and other Fed officials say they want to see how Trumps duties on imports will impact inflation and the broader economy. So far the duties have lifted costs of some goods, such as appliances, furniture, and toys, and overall inflation has risen a bit, though less than many economists had expected. There were some signs of splits in the Feds ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while 9 officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didnt vote. The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies. Trump argues that because the U.S. economy is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled start-up, the Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak. Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year. Some of the disagreement likely reflects jockeying to replace Powell, whose term ends in May 2026. Waller, in particular, has been mentioned as a potential future Fed chair. Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter-point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution. Waller also said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a weaker economy and a rise in unemployment. There are other camps on the Feds 19-member rate-setting committee (only 12 of the 19 actually vote on rate decisions). In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut this year. The other half supported more reductions, with eight officials backing two cuts, and two widely thought to be Waller and Bowman supporting three reductions. The dissents could be a preview of what might happen after Powell steps down, if President Donald Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support. Overall, the committees quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings in September, October, and December and some economists forecast that a cut will occur in September. Wall Street investors also expect cuts in September and December, according to futures pricing. When the Fed cuts its rate, it often but not always results in lower borrowing costs for mortgages, auto loans and credit cards. Some economists agree with Waller’s concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care. We are in a much slower job hiring backdrop than most people appreciate, said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, it would say more about auditioning for the Fed chair appointment than about economic conditions. The Fed’s two-day meeting comes after a week of extraordinary interactions with the Trump White House, which has accused Powell of mismanaging an extensive, $2.5 billion renovation of two office buildings. Trump suggested two weeks ago that the rising cost for the project could be a firing offense but has since backed off that characterization. Notably, Trump argues that the Fed should cut because the economy is doing very well, which is a different viewpoint than nearly all economists, who say that a healthy, growing economy doesn’t need rate cuts. If your economy is hot, you’re supposed to have higher short-term rates, Porcelli said. Christopher Rugaber, AP economics writer
Category:
E-Commerce
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