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Operation Choke Point 2.0 is an alleged initiative by the Biden administration aimed at restricting crypto firms' access to banking services, drawing parallels to a previous program under Obama. Critics argue that regulatory actions from agencies like the SEC and FDIC have pressured banks to sever ties with the crypto industry, despite official denials of the program's existence. Trump has pledged to dismantle this initiative if re-elected, echoing his previous efforts to end the original Operation Choke Point.
Swiss lawmakers have called for stricter oversight of the financial sector following a report that attributed Credit Suisse's collapse to mismanagement and criticized regulatory responses. Meanwhile, UniCredit's CEO emphasized the need for deeper European banking integration to enhance economic growth, while US regulators face scrutiny over their handling of bank mergers, particularly regarding Capital One's proposed acquisition of Discover. In a separate development, Crédit Agricole has agreed to acquire Santander's stake in Caceis, gaining full control of the asset servicing entity.
SEC Commissioner Caroline Crenshaw, known for her critical stance on cryptocurrency, will not be reappointed after the Senate Banking Committee canceled her renomination vote. This decision follows significant backlash from the crypto industry, which has labeled her as "more anti-crypto than Gensler." With her future uncertain, the industry anticipates a more crypto-friendly successor in 2025, potentially leading to a favorable regulatory environment for digital assets in the U.S.
Senator Tim Scott, the new chair of the U.S. Senate Banking Committee, plans to introduce the Financial Innovation and Technology for the 21st Century Act (FIT21) and a stablecoin bill to establish clearer crypto regulations in 2025. He aims to create a digital assets subcommittee and aligns with pro-crypto initiatives alongside the incoming Trump administration. Despite expected criticism from Senator Elizabeth Warren, Scott emphasizes the potential of crypto as the "next wonder of the world."
Elon Musk responded to Senator Elizabeth Warren's concerns about potential conflicts of interest related to his role in President-elect Trump's administration, suggesting that her criticisms are influenced by the parents of Sam Bankman-Fried. Musk, who is set to help cut $2 trillion in federal spending, dismissed Warren's claims, while she argued that his position could lead to significant corruption without strict conflict-of-interest rules. Trump’s spokesperson defended Musk, contrasting his societal impact with Warren's political career.
US lawmakers are making a final push to confirm Caroline Crenshaw for another term at the SEC before Democrats lose control in January. The Senate Banking Committee, led by Sherrod Brown, has scheduled a vote for Dec. 18 after delays attributed to Republican opposition linked to corporate interests, particularly from the cryptocurrency sector. Crenshaw, who has served since 2020, faces criticism for her stance on crypto regulations, and her confirmation is crucial as the SEC may shift to a Republican majority with potential changes in leadership.
BlueSky, an alternative to X created by Jack Dorsey, has surpassed 25 million users as some abandon X amid controversies surrounding Elon Musk's ownership. While BlueSky aims for a decentralized discourse reminiscent of early web days, it faces challenges like misinformation and scams, similar to those encountered by X. The platform's growth has coincided with a notable exodus from X, with millions of users reportedly leaving since Musk's acquisition.
President-elect Donald Trump’s transition team is considering a significant restructuring of financial regulatory agencies, including the potential abolition of the FDIC and merging its functions with the Treasury Department. Major changes would require congressional approval, which is historically challenging. The banking industry anticipates benefits from Trump’s reelection, with expectations of rolling back regulations imposed during the Biden administration, particularly those affecting capital requirements and the crypto sector. FDIC Chair Martin Gruenberg has announced his retirement effective January 19, 2025, amid internal investigations into workplace issues.
Stocks closed lower as the Dow experienced its longest losing streak since April, dropping 0.5% to 43,914. A hotter-than-expected inflation report and declines in major stocks like Nvidia and Tesla weighed on investor sentiment. ServiceTitan surged 42% in its market debut, while Adobe fell 13.7% due to weak revenue guidance. UnitedHealth Group's shares dropped 3.4% amid bipartisan efforts to break up large healthcare companies.
A bipartisan group of lawmakers plans to introduce legislation aimed at breaking up pharmacy benefit managers, requiring them to divest their pharmacy businesses within three years. This move, driven by ongoing scrutiny, could significantly impact the revenue of these companies and improve patient experiences.In a groundbreaking initiative, Eli Lilly will begin studying its GLP-1 obesity treatments, including Zepbound, as potential therapies for alcohol and drug addiction. Emerging research indicates these drugs may suppress cravings not only for food but also for other substances, marking a first for major drugmakers in this area.
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