Daily News | US Government Shutdown May Lead to SEC Regulatory Restrictions, Taiwan Launches Its First Cryptocurrency Law, Singapore Strengthens Anti-money Laundering Review

2023-09-22, 04:01

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## Crypto Daily Digest: US government shutdown may lead to SEC regulatory restrictions; Taiwan launches its first cryptocurrency law
According to Bloomberg, Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), the US government shutdown will impact the SEC's market regulation.

He stated that due to the possibility of the federal government shutting down at the end of this month, the regulatory activities of the SEC will be severely restricted and may not be able to fulfill some basic functions. Gensler said that the SEC may be unable to evaluate the application documents of companies that want to go public. If a major event occurs, the agency will not be able to regulate the market fully.

However, Gensler downplayed the claim that closing a door would cause significant market chaos. "The treasury bond bond market will continue to operate and the stock market will continue to trade. There is just a lack of market supervisors," he said.

It is reported that the US government is facing a crisis of closure unless Congress reaches an agreement by the end of this month to pass a spending bill. Under the leadership of Gary Gensler, the US SEC has filed multiple lawsuits against the crypto industry this year.

The regulatory environment for cryptocurrencies in the United States has recently undergone positive changes, with the most important being an appeal court ruling in favor of Grayscale companies in a lawsuit filed against them. The company previously sued the US Securities and Exchange Commission (SEC) for rejecting its <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETF application.

The court ruled that the SEC's rejection of Grayscale company's ETF conversion proposal was arbitrary and capricious, as the SEC failed to explain its different treatment of similar products (Bitcoin futures ETFs and Bitcoin spot ETFs). This ruling increases the opportunity for companies such as BlackRock and Fidelity to apply for approval of Bitcoin ETFs.

In early August, the Taiwan Monetary Commission convened all cryptocurrency trading platforms in Taiwan that have completed the "Money Laundering Prevention and Control Law Declaration" to jointly discuss the "Guidelines for Virtual Asset Service Provider (VASP)" that will be released by the end of September. Yesterday, legislator Jiang Yongchang held a press conference in the Legislative House and announced that the first virtual asset law in Taiwan would be introduced during this session.

Following last month's crackdown on money laundering activities involving assets worth over S $2.4 billion, Singapore banks are strengthening their scrutiny of some clients born in China who hold other nationalities. According to insiders, some banks have reviewed new accounts and transactions with Chinese clients holding investment-related passports. At least one international bank is closing some customers' accounts with citizenship in Cambodia, Cyprus, Türkiye, and Vanuatu. Other banks in Singapore have started evaluating whether to accept new funds from customers with similar backgrounds based on the case situation, which will take longer.
## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1695360874BTC.png)
This week has seen the completion of a top-level rebound demand, and as expected, it has retraced within the price range. Short-term stability is around $26,510 USD, with two resistance levels above $26,975 USD and $27,283 USD, which continue to exert short-term pressure. For the downside, it is recommended to hold steady within the range of $25,280 USD.

### MKR
![](https://gimg2.gateimg.com/image/article/1695360893MKR.png)
A long-term structure has formed a large bullish head and shoulders pattern, with the overall downtrend breaking again in the middle of this month. In the short term, it has touched the resistance at $1,371 USD, the highest point in the past year. Short-term retracement is needed at $1,275 USD. Consider adding to your position on dips and wait for a breakout, as a significant rise is expected once it breaks through.

### OPIUM 
![](https://gimg2.gateimg.com/image/article/1695360912OPIUM.png)
The overall market has fallen from its all-time high of $29.89 USD to $0.052 USD, breaking the private placement price. There have been signs of a bottom in the past month, with the low point above $0.045 USD. In the short term, it's forming a triangular convergence pattern. If it shows a rebound, the targets to watch are $0.07229 USD, $0.09514 USD, and $0.1578 USD, in that order.
## Macro: Hawkish statements put pressure on US stock prices, with the Federal Reserve focusing on reducing inflation
The three major stock indices of the US stock market opened low and closed low under pressure, with the Dow down 1.08%, the Nasdaq down 1.82%, and the S&P 500 index down 1.64%, marking the largest daily decline in nearly half a year.

The US dollar index slightly declined, but remained close to a six-month high of 105.74 during the session. It then took back all gains and turned down, ultimately closing down 0.06% at 105.38. In terms of US bond yields, the two-year US bond yields first rose and then fell, initially hitting above the 5.2% mark at the beginning of the trading session, then fluctuating and falling, ultimately closing at 5.144%; The 10-year US Treasury yield surged and briefly approached the 4.5% mark, ultimately closing at 4.494%.

Due to the "suppression" of US bond yields, spot gold fell below the $1,920 level and fell to an intraday low of $1,913.97 before the US market. Ultimately, it narrowly avoided the $1,920 level and closed 0.53% lower, closing three consecutive negative days at $1,920.08 per ounce. Spot silver showed a V-shaped trend, falling to an intraday low of $22.81 before the US market, then regaining all lost ground and turning higher, ultimately closing 0.7% higher at $23.4 per ounce.

The views of Federal Reserve officials on neutral interest rates are undergoing significant changes, which will profoundly impact the economy, investors, and markets.

Firstly, the Federal Reserve unexpectedly stated that interest rates will not decrease and may remain high long-term. This means that investors, businesses, and households planning to rely on long-term low-interest rates may need to reassess their strategies. This also explains why the long-term treasury bond yield rises and the stock market is in trouble.

Secondly, neutral interest rates, which can maintain long-term stability in inflation and unemployment rates, have risen. This is a complex concept that is influenced by various factors, including population structure, global capital demand, government debt levels, and inflation risk. Although neutral interest rates cannot be directly observed, they have a significant impact on monetary policy and the economy.

Federal Reserve officials' estimates of neutral interest rates are increasing, indicating that they believe long-term interest rates will remain relatively high. This may be influenced by factors such as the repayment of debts by businesses, households, and banks after the financial crisis, as well as the increase in government deficits.

Finally, although inflation itself should not directly affect neutral interest rates, the Federal Reserve is more concerned about maintaining inflation rates above 2%. It is therefore willing to raise interest rates instead of maintaining them near zero. Other factors, such as population aging, have also impacted neutral interest rates.

Overall, the current trend suggests that neutral interest rates may rise, although they have not yet reached pre-crisis levels. However, this is only a prediction, and multiple factors will still influence the future. Therefore, investors and the public should gradually adapt to a higher interest rate environment while closely monitoring market developments and the Federal Reserve's policy decisions.

The split within the Republican Party in the United States House of Representatives has led to the third failure to advance the defense spending bill, and the issue of government shutdown has become increasingly urgent. In addition, the Republican leaders of the US House of Representatives announced a recess on Thursday, which may shatter hopes of passing a bill to provide funding for the government in the coming days.

The outcome and impact of the bipartisan negotiations on the upcoming spending bill are currently not very optimistic. If there is a government shutdown, it will inevitably impact the economy and the Federal Reserve's November decisions if it continues for a long time. Therefore, we need to continue to pay attention.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>