Former US Commodity Futures Trading Commission Chairman Gary Gensler told a conference that most of the cryptocurrencies being sold through initial coin offerings should be classified as securities by regulators. Gensler also said in an interview that if cryptocurrencies gets broad adoption, "it needs to come inside of the public policy envelope."
Larry Kudlow, chief economic adviser to President Donald Trump, has offered perspective on Trump's comments on the Federal Reserve's interest-rate policy, emphasizing that Trump was expressing opinion as a businessman, respects the Fed's independence and was not calling for a policy change. "I think the bigger picture is ... the White House, the president, the Federal Reserve, everybody wants this economic boom to continue," Kudlow said.
AFME has urged the European Commission to ensure uninterrupted cross-border activity in the event of a no-deal Brexit. AFME CEO Simon Lewis says it is essential the commission act swiftly to prevent UK clearinghouses from losing EU clients to avoid market disruption and financial instability.
Central banks in the EU and the US aim to keep inflation under control but face pressure from governments to loosen monetary policy. European Central Bank President Mario Draghi calls such requests "one of the risks in the geopolitical sphere".
The Italian government has delivered a last-minute budget to the European Commission for review. The commission has one week to assess the proposal, and Italy must submit new plans if adjustments are required.
The Spanish economic recovery might have passed a cyclical peak, European Central Bank Vice President Luis de Guindos says, noting downside risk has emerged. He warns that weakening conditions in emerging markets pose further risk to growth.
Meeting minutes show the Bank of England's Money Markets Committee wants greater education on the transition to an alternative benchmark from Libor. The call comes as markets prepare to switch in late 2021 and as securities linked to the Sterling Overnight Index Average and the Secured Overnight Financing Rate gain traction.
The Basel Committee on Banking Supervision's overhaul of market-risk capital requirements could lead banks to choose between the internal models approach and the standard approach to comply with the Fundamental Review of the Trading Book, says Andrew Aziz, global head of financial risk analytics at IHS Markit. "They have to evaluate desk by desk, which means they might end up restructuring their desks," he says.
Financial firms in more than a half-dozen jurisdictions are participating in cryptoasset markets, but the size of investments is unclear, and this exposure could threaten the global economy, the Financial Stability Board says. National regulators have a responsibility to come up with data to track growth of cryptoasset holdings, the FSB says.
US businesses attending a trade event next month in Shanghai are expected to seek clear signs that China is willing to open up markets to Western exporters. Ken Jarrett, president of the American Chamber of Commerce in Shanghai, says the decision to host the China International Import Expo is a welcome step but urges Chinese authorities to reduce nontariff barriers to trade.
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