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The U.S. Securities and Exchange Commission (SEC) significantly reduced its crypto-related enforcement actions in 2024, with a 30% drop from the previous year, according to a report by Cornerstone Research. Under former Chair Gary Gensler, the SEC launched 33 lawsuits compared to 47 in 2023. Despite the decrease in the number of actions, the penalties imposed on the crypto industry reached an all-time high of nearly $5 billion, largely due to a $4.5 billion settlement with Terraform Labs. The SEC's enforcement activities were concentrated in September and October, with a notable decline in actions post the U.S. elections in November. The most frequent charges were related to fraud and unregistered securities offerings. Gensler's tenure saw a marked increase in crypto enforcement compared to his predecessor, Jay Clayton. Following Gensler's departure, the SEC under acting chair Mark Uyeda has already begun to shift its focus, notably by canceling a controversial rule affecting how banks and finance firms account for crypto assets.
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The White House is currently reassessing the terms of the US CHIPS and Science Act, which was designed to enhance domestic semiconductor production with $39 billion in subsidies. The review, influenced by President Trump's executive orders, aims to renegotiate some of the deals, potentially causing delays in funding disbursements. Companies like GlobalWafers, expecting significant grants, are awaiting clarity on how these changes might affect their agreements. The administration's focus includes revising conditions such as the use of unionized labor and childcare provisions, which were part of the original contracts. The Semiconductor Industry Association has expressed readiness to collaborate with the new administration to refine the program's requirements, ensuring that the U.S. maintains its competitive edge in semiconductor technology. Meanwhile, major recipients like Intel, TSMC, Samsung, and SK Hynix, who have significant operations in China, are also under scrutiny for their overseas expansion plans post-receiving CHIPS Act funds.
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China is reportedly planning a significant meeting between its top leaders, including President Xi Jinping, and key figures from the private sector like Alibaba's Jack Ma. This move comes after years of regulatory crackdowns on private enterprises, particularly highlighted by the scuttling of Ant Group's IPO in 2020. The potential meeting, which could happen as soon as next week, is seen as a gesture of support for the private sector, which has been under pressure due to Xi's policies aimed at tightening state control and promoting national security and technological self-sufficiency. The inclusion of entrepreneurs like Jack Ma, who has been less visible since the Ant Group incident, and Liang Wenfeng, whose AI advancements have put China at the forefront of AI technology, suggests a possible shift in policy. This development has already sparked optimism in the market, with Alibaba's shares seeing significant gains. However, the extent to which this meeting will translate into concrete policy changes remains uncertain, especially in the context of China's economic challenges and potential trade tensions.
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The article discusses the impact of President Donald Trump's tariff threats on the US dollar, which has seen a decline due to growing speculation that these tariffs are primarily a negotiating tactic rather than a definitive policy. The Bloomberg Dollar Spot Index has fallen by approximately 2.5% from its February peak, reflecting investor skepticism about the immediacy and severity of the proposed tariffs. This uncertainty has led to a weakening of the dollar against all its Group-of-10 peers, with significant losses against commodity currencies like the Canadian and Australian dollars. Market reactions also include a reduction in bullish bets on the dollar, with options volumes dropping by around 20% this week. Despite some investors still holding onto expectations of a stronger dollar due to the robust US economy, the overall market sentiment leans towards viewing the tariffs as a bluff, potentially leading to a continued decline in the dollar's value if this perception solidifies.
