Here is an outline for today’s newsletter🔥

• ⚖️ Republicans push crypto oversight.

• 📈 Strong job growth in the US, more rate hikes to come?

• 🏦 Russia’s top bank explores digital assets for cross border payments.

Republicans push Crypto oversight

Key committee chairs have introduced draft legislation aimed at establishing robust oversight and building regulatory frameworks for the digital assets sector.

The proposed bill represents a comprehensive approach to crypto regulation, addressing key aspects such as asset classification, registration of crypto exchanges, and customer protection.

Under the proposed legislation, crypto exchanges would have the opportunity to register with the U.S. Securities and Exchange Commission (SEC) and operate as platforms for trading digital securities, commodities, and stablecoins within a single regulated environment.

This consolidation of activities would streamline the trading process and enhance investor protection. It is about time🤣

The bill recognises the need to classify assets accurately as commodities or securities and introduces guidelines for regulated crypto firms to argue for commodity status.

However, these firms would be required to demonstrate decentralisation and provide detailed explanations to support their classification.

Furthermore, the legislation paves the way for SEC-registered crypto exchanges to trade stablecoins and commodities, provided they also register with the U.S. Commodity Futures Trading Commission (CFTC).

To ensure consumer protection and guard against market manipulation, the bill introduces a new category of registered businesses called digital commodity exchanges under the authority of the CFTC.

A key objective of the proposed bill is to modernise regulations for crypto-specific oversight, which could potentially lead to updates in existing securities laws enforced by the SEC.

However, it is important to note that the bill is currently in the "discussion draft" stage and lacks Democratic support. The committee chairs intend to initiate conversations and work towards finding common ground on the legislation.

The bill encompasses various notable provisions, including:

• Certification process for token projects

• Safe harbours for existing crypto assets

• Granting broker-dealers the ability to custody crypto assets.

However, the legislation does not include specific appropriations for additional funding, leaving that aspect open for discussion during the regular congressional budget process.

The future of the bill hinges on negotiations with House Democrats, potential amendments in the Senate, and its compatibility with other crypto-related bills, particularly those addressing stablecoin regulation.

The goal is to strike a balance between effective oversight and fostering innovation within the crypto industry.

Strong job growth in US, more rate hikes?

In a positive development for the US economy, the country added an impressive 339,000 jobs in May, surpassing economists' forecasts of 195,000 jobs.

Thats great, more people working and less people unemployed 🔥

This robust employment market is likely to bolster the case for the Federal Reserve to continue its streak of rate hikes at its upcoming June meeting.

The release of the strong job report had a relatively muted impact on the price of Bitcoin, as the cryptocurrency remained steady at just above $27,000.

Markets are currently divided on whether the Fed will proceed with another rate hike at its upcoming meeting.

Any indications of a shift in the central bank's attitude towards monetary policy could impact the price of Bitcoin and other financial assets.

On another note, average hourly earnings in May saw a 0.3% increase compared to April's 0.4% growth, aligning with expectations.

As the Federal Reserve's June meeting approaches, market participants will closely monitor any statements or signals from the central bank regarding its stance on interest rates.

The decisions made by the Fed will have implications not only for traditional financial markets but also for the cryptocurrency landscape, including the price and stability of Bitcoin.

Russia's Rosbank Explores Cross-Border Transactions Using Digital Assets

Rosbank, one of Russia's leading banks, is embarking on a pilot project to utilise digital assets for cross-border transactions. The bank aims to leverage cryptocurrency for facilitating seamless cross-border payments.

In recent pilot transactions, Rosbank has already tested the use of digital assets for both corporate and private clients. This initiative signifies the bank's progressive approach toward adopting innovative technologies in the financial sector.

We need more traditional banks to start using the technology to see more adoption.

It's worth noting that Rosbank and its owner, Vladimir Olegovich Potanin, faced sanctions from the U.S. Treasury Department last year. Despite this setback, the bank remains committed to exploring the potential of digital assets for cross-border payments.

To facilitate the project, Rosbank is collaborating with fintech company B-Crypto. However, the specific cryptocurrency to be utilised in this initiative was not disclosed in the available information.

Notably, Vladimir Olegovich Potanin, the owner of Rosbank, has expressed his support for tokenised assets and the development of a central bank digital currency (CBDC).

This indicates a broader interest in embracing blockchain-based solutions and digital currencies within the financial system.

Additionally, Russia is actively exploring the use of stablecoins for payments with "friendly countries." This strategic move aims to reduce reliance on traditional currencies such as the dollar or euro, potentially offering greater financial autonomy in international transactions.

This is part of the reason on why people are predicting that the de-dollarisation would happen sooner than expected.

As Rosbank progresses with its pilot project and Russia explores the integration of stablecoins for cross-border payments, the financial landscape in the country could witness notable developments.

It will be intriguing to observe how these initiatives unfold and their potential impact on Russia's position in the global financial arena.

✨Bonus News✨

• Will you be replaced by an AI Clone? Maybe in the future, but not yet hopefully.

• Most expensive places to raise kids. Probably best to look for other places if you are into saving some money.

• Will private ID verification be a thing? Looks like Binance is taking a lead on this approach.

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.