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Stock Market Concerns Over Tariffs May Mask Deeper Economic Slowdown

The stock market, despite trading near record highs, is showing signs of concern due to a slowing US economy, as highlighted by Neil Dutta of Renaissance Macro. He argues that discussions around tariffs are merely a distraction from underlying issues like weak consumer spending and government expenditure. With the Federal Reserve pausing rate cuts, a passive tightening of monetary policy may lead to falling long-term rates and stocks, indicating potential risks ahead.

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SEC Chairman Clarifies Bitcoin and Ethereum Status as Non-Securities

Outgoing U.S. SEC Chairman Gary Gensler clarified that the commission has never classified Bitcoin and Ethereum as securities, emphasizing that neither he nor former SEC Chairman Jay Clayton has made such claims. He urged the public to approach blockchain technology with rationality, enhance risk awareness, and exercise caution regarding virtual token issuances and speculations.

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SEC Chair Gensler Warns of Risks and Bad Actors in Crypto Market

Departing SEC Chair Gary Gensler has warned that the cryptocurrency market is “rife with bad actors,” highlighting ongoing compliance issues and the need for regulation. During his tenure, he oversaw 100 enforcement actions against fraud and non-compliance, asserting that most digital currencies qualify as securities. Gensler emphasized his commitment to investor protection and market integrity, countering claims of being anti-crypto by referencing his academic background in blockchain technology.

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Gary Gensler Reflects on SEC’s Crypto Enforcement and Industry Challenges

Gary Gensler, departing SEC Chairman, criticized the cryptocurrency industry as “rife with bad actors” during a Bloomberg TV interview, reflecting on his tenure marked by approximately 100 enforcement actions against fraud. He emphasized that most of the 10,000 to 15,000 crypto projects are unlikely to survive, likening them to venture capital investments. As he prepares to step down, Gensler acknowledged the contentious relationship with the crypto industry, which views his strict regulatory approach as stifling innovation. In a separate development, Elixir is partnering with Securitize to provide institutional access to Hamilton Lane’s Senior Credit Opportunities Fund through decentralized finance, utilizing its stablecoin, deUSD, to enhance liquidity and composability for real-world assets.

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Market Faces Selling Pressure Amid Year-End Tax Strategies and Uncertainties

Stocks fell in thin year-end trading, driven by profit-taking and tax-loss harvesting, with over 90% of S&P 500 constituents in the red. Analysts noted that the market’s liquidity dependence and year-end rebalancing by large funds contributed to the sell-off, raising concerns about future direction amid uncertainties regarding interest rates and new administration policies.

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Crypto Trends to Watch in 2025: Adoption, ETFs, and Gaming Growth

Bitwise CIO Matt Hougan forecasts significant crypto trends for 2025, including institutional adoption, stablecoins, and blockchain gaming. He predicts Bitcoin could reach $200,000, Ethereum may exceed $5,000, and Solana could hit $750-$1,000, driven by regulatory changes and growing mainstream acceptance. The anticipated boom in Bitcoin ETFs could attract $40-$50 billion in inflows, while potential regulatory shifts may allow 401(k) plans to include crypto, enhancing liquidity. Stablecoins are expected to triple in market size, reaching $350 billion, and blockchain gaming could become a key driver of mainstream crypto adoption.

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US Labor Market Data and Corporate Earnings Highlight December Trading Week

Stocks are poised to enter December near record highs, with the Dow rising over 2% last week and both the S&P 500 and Nasdaq gaining more than 1%. Investors are focused on the upcoming November jobs report, expected to show a gain of 200,000 jobs and a slight increase in the unemployment rate to 4.2%, which will influence the Federal Reserve’s interest rate decisions on December 18. Corporate earnings from Salesforce, Okta, and Lululemon will also be in the spotlight this week.

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Litecoin On-Chain Volume Surges to 412 Million LTC in One Week

Litecoin’s on-chain volume surged to 412 million LTC in a week, surpassing $26.5 billion, marking a significant increase from 196 million LTC the previous year. With 62 million transactions in the first seven months of 2024, Litecoin is on track to exceed last year’s total, showcasing its growing adoption and utility in the digital currency market. The average transaction fee remains low at $0.005, making it a more practical option for daily transactions compared to Bitcoin.

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The Shift from Traditional Finance to Decentralized Financial Systems

In the mid-1990s, Microsoft dominated the operating system market with Windows, but the rise of the Internet, led by Netscape, marked a significant shift. Today, a similar transformation is occurring in finance, as decentralized systems like blockchain and stablecoins challenge the U.S. dollar’s dominance. Investors are urged to identify key players in this evolving landscape, akin to the early days of the Internet, to capitalize on the impending financial revolution.

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Ripple’s Legal Chief Discusses SEC Ruling and Future of Crypto Adoption

Ripple’s legal chief, Stuart Alderoty, expressed optimism following Judge Analisa Torres’ ruling, which found that XRP is not intrinsically a security, marking a significant win for the company and the crypto sector. While Ripple was ordered to pay a $125 million fine for certain sales, Alderoty believes the SEC lost on key issues and hopes the ruling will encourage a more favorable regulatory environment for crypto in the U.S. Ripple aims to move forward and focus on business growth after the lengthy legal battle.

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Tuning Out Market Noise: Long-Term Discipline for Successful Investing

Investment expert Jay McGowan emphasizes the importance of focusing on long-term discipline over short-term emotions when managing a stock market portfolio. He advises investors to resist the urge to make impulsive decisions driven by headlines and emotions, and instead, to stick to solid investment strategies for long-term success. McGowan highlights the significant impact of behavioral coaching on investment returns, quantifying that it can provide an additional 1 to 2% per year in net return over extended periods of time.

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Judge Criticizes Coinbase’s Attempt to Subpoena SEC Chair in Hearing

Judge Failla criticized Coinbase’s attempt to subpoena SEC Chair Gary Gensler in the ongoing SEC case against the cryptocurrency exchange. The judge expressed skepticism about Coinbase’s efforts to acquire Gensler’s communications, including statements made before he became SEC Chair in 2021. Despite Coinbase’s arguments, the judge directed them to file a motion to compel and proceed with further scheduling discussions with the SEC.

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