30/05/2025

FRIDAY | MAY 30, 2025

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Crypto has ‘champion’ in White House: Vance WASHINGTON: Cryptocurrencies have “a champion and an ally” in US President Donald Trump, Vice-President JD Vance said on Wednesday, adding that the administration would end a “weaponisation” of regulations against the community. Trump last week also hosted a dinner for hundreds of top investors in his crypto memecoin, while sign-holding protesters outside the event and Democratic opponents blasted the event as blatant corruption. enacting a regulatory framework for digital assets that is “pro-innovation and fully incorporates crypto” into the economy. “We want our fellow Americans to know that crypto and digital assets, and particularly bitcoin, are part of the mainstream economy and are here to stay,” he said.

The unprecedented melding of American presidential power and personal business took place at Trump’s golf club outside Washington. Vance told the bitcoin conference, at which he was keynote speaker, that “we reject regulators”, taking aim at former Securities and Exchange Commission chairman Gary Gensler, who pursued aggressive enforcement against the crypto industry. Gensler launched lawsuits against major trading platforms including Coinbase, Binance, and Kraken, along with various smaller startups. Vance expressed an aim of

Speaking at The Bitcoin Conference in Las Vegas, Vance also said the Trump administration sought to create a “pro-growth legal framework for stablecoins in this country”. This refers to tokens pegged to stable assets such as the US dollar to prevent drastic fluctuations. Vance’s comments came a day after Trump’s media company said it would raise around US$2.5 billion with an eye to creating a“bitcoin treasury.” Trump Media & Technology Group, which operates the Truth Social site, said in a statement on Tuesday that cryptocurrency will be a key part of its assets.

Trump’s adult sons, Donald Jr. and Eric, were also due to speak at the event in Las Vegas. The president’s newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his sons. Their growing portfolio includes investments in Binance, a major crypto exchange whose founder is seeking a presidential pardon to re-enter the US market. Lawmakers recently advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins, with the legislation clearing a procedural vote.– AFP

Attendees posing for photos in front of a sign at The Bitcoin Conference at The Venetian Convention & Expo Centre in Las Vegas. – AFPPIC

Stocks and dollar rally as Trump tariffs hit roadblock

US curbs chip design software, chemicals, other shipments to China WASHINGTON: The United States has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licences already granted to certain suppliers, said three people familiar with the matter. The new restrictions – which are likely to escalate tensions with Beijing – appear aimed at choke points to prevent China from getting products necessary for key sectors, one of the people said. Products affected include design software and chemicals for semiconductors, butane and ethane, machine tools, and aviation equipment, the people said. Many companies received letters from the US Department of Commerce over the last few days informing them of the new restrictions. Firms that supply electronic design automation (EDA) software for semiconductors were sent letters last Friday that licences would now be needed to ship to Chinese customers, two of the sources said. The electronic design automation software makers include Cadence, Synopsys and Siemens EDA, one said. The two sources said the Commerce Department will review requests for licences to ship to China on a case-by-case basis, suggesting the action was not an outright ban. The Commerce Department said it is reviewing exports of strategic significance to China, while noting “in some cases, Commerce has suspended existing export licences or imposed additional licence requirements while the review is pending”. Any move to strip the software makers of their Chinese customers could deal a blow to their bottom line and to their Chinese chip design customers, which heavily rely on top-of-the-line American software. – Reuters

Earlier in Asia, Japan’s Nikkei rose 1.9%, while South Korean shares climbed 1.9% to a nine-month high. Chinese blue chips firmed 0.6%. The news of the court decision hit traditional safe-haven currencies, which have benefitted from tariff fears punishing the US dollar. The dollar gained nearly 1% against the Japanese yen . It later eased and but remained up 0.3%. The dollar was, meanwhile, up 0.4% against the Swiss franc. Another beneficiary of dollar woes, the euro dropped as much as 0.7% and was last down 0.2% against the greenback. US Treasury yields rose, adding to the pressure on the market unnerved by Trump’s hefty tax and spend bill, which passed the House of Representatives last week. Yields on 10-year Treasuries, which move inversely with prices, were up 4 basis points to 4.52% and markets further shaved the chance of a Federal Reserve rate cut anytime soon. Longer-dated, 30-year yields held above the closely-watched 5% level. In commodity markets, gold was down 0.2% to US$3,283 an ounce. Oil prices extended a rally first begun on supply concerns as Opec+ agreed to leave its output policy unchanged and the US barred Chevron from exporting Venezuelan crude. Brent rose US$1 to US$65.9 a barrel, while US crude rose similarly to US$62.84 per barrel. – Reuters The FCA invited public comment on the proposals so they could be refined before final rules are published in 2026. “At present, crypto is largely unregulated in the UK,” said the FCA director for digital finance David Geale. “We want to strike a balance in support of a sector that enables innovation and is underpinned by market integrity and trust.” – AFP

The ruling could also encourage American trading partners to stall any trade negotiations they are having with the White House while they wait to see how the case is resolved. However, analysts at Goldman Sachs noted the order does not block sectoral levies, and there were other legal avenues for Trump to impose across-the-board and country-specific tariffs. “This ruling represents a setback for the administration’s tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners,” analyst Alec Phillips wrote in a note. Europe’s STOXX 600 index was up 0.3% in early London trade. US markets looked primed for a stronger reaction with S&P 500 futures last up 1.6%. Nasdaq futures were up 2%, also benefiting from relief over earnings from Nvidia, which beat sales estimates. But Britain’s FTSE 100 index shrugged off the news and was last down 0.1%. “Is this a sign that stock markets in countries who did manage to score trade deals with the US in recent weeks, could be at a disadvantage if tariffs are reversed? This could be a short-term theme to watch,” said Kathleen Brooks, research director at XTB. Britain was the first country to secure a trade deal with the US and will hold talks with Washington next week to speed up the implementation of that deal, the Financial Times reported. The regulator’s proposals include having firms that issue stablecoins safeguard the cryptocurrency for clients, similar to the way banks do, by ensuring both security and easy access. It also wants issuers to guarantee the value of stablecoins by giving clients the option of selling them back, and for them to set aside asset reserves – for instance, of one-year bonds – equivalent to the value of the stablecoins made available.

o Uncertainty lingers over whether administration will fully comply with court ruling LONDON: European stocks and Wall Street futures rose yesterday after a US federal court blocked President Donald Trump’s so-called “Liberation Day” tariffs from going into effect, sending the dollar up on safe-haven currencies. The little-known Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing his April 2 across-the-board duties on imports from US trading partners. The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed. But in the meantime, it offered some hope that Trump might back away from the highest tariff levels he had threatened. “The ruling has brought a temporary sense of relief to the markets, even as uncertainty lingers over whether the administration will fully comply,” said James Leong, chief executive officer at Grasshopper Asia. “While volatility has eased for now, the lack of clarity around the government’s response could reignite market turbulence. Until the Supreme Court provides a definitive ruling, we’re unlikely to see a lasting resolution.”

UK regulator issues proposals for stablecoins LONDON: Britain’s financial market regulator on Wednesday published proposals for the issuance of stablecoins ahead of national rules for the pound-pegged cryptocurrency being laid down next year.

Stablecoins – a form of digital currency linked to real-world money, unlike bitcoin – “have the potential to drive efficiency in payments”, in particular across borders, the Financial Conduct Authority (FCA) said in a statement.