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Feds crackdown on stablecoins

The Federal Reserve, in a significant move aimed at shaping the landscape of digital payment activities within the banking sector, has issued a comprehensive policy statement clarifying its stance on state member banks engaging in certain activities involving digital currencies, particularly dollar tokens.

The newly released policy statement addresses section 9(13) of the Federal Reserve Act and its implications for state member banks and their subsidiaries. In essence, the policy statement sets forth a presumption that the Federal Reserve will exercise its discretion to limit state member banks and their subsidiaries to engaging as principal in activities that are permissible for national banks.

“A state member bank seeking to engage in activities permitted for national banks… including issuing, holding, or transacting in dollar tokens to facilitate payments, is required to demonstrate, to the satisfaction of Federal Reserve supervisors, that the bank has controls in place to conduct the activity in a safe and sound manner,” the regulation said.

You can read more on the matter here.

What’s going on?

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• ChatGPT fever spreads to US workplace, sounding alarm for some (Reuters)

• Petition to ‘Reclaim the Redskins Name’ Gains Over 75,000 Signatures (theDeepDive)

• Bittrex Agrees To Settle SEC Charges For $24 Million (theDeepDive)

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• Twitter Loses More Money to Litigation, Slapped with $350K Fine for Not Complying with A Search Warrant Over Trump Investigation (theDeepDive)

What’s the latest?

• Canadian Tire Abandons Profit Target: Canada's biggest retailer, is ditching its 2025 profit goal of C$26 per share due to rising interest rates and inflation affecting consumer spending. The decision reflects broader economic changes and challenges to growth.

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• IEA Outlook on Oil Market: The IEA predicts OPEC+ supply cuts could reduce oil inventories and boost prices this year. However, economic challenges may limit demand growth in 2024. The IEA sees potential for lower inventories if OPEC+ maintains targets. Demand growth is expected to slow due to economic factors and electric vehicles.

• Amazon Enforces Office Return: Amazon is clamping down on US employees who haven't met the requirement of spending at least three days weekly in the office. Despite lockdowns easing, office attendance remains about 30% below pre-pandemic levels according to McKinsey.

• ChatGPT Usage Amid Concerns: US workers are using ChatGPT for tasks despite employer restrictions, a Reuters/Ipsos poll finds. About 28% use it at work, while 22% have permission. Concerns over security and data leaks have emerged due to the AI's capabilities. Firms like Coca-Cola and Tate & Lyle are cautiously exploring usage, while others ban it due to security vulnerabilities.

The chip war, explained.

The stock market and stuff

• Jushi Holdings Sees Revenues Fall In Second Quarter (theDeepDive)

• Trucking firm Yellow extends bankruptcy loan negotiations until next week (Reuters)

• Alphabet’s $118 Billion Cash Pile Poses a New Problem (Bloomberg)

• Amazon Cracks Down on Employees Who Stay Away From the Office (Bloomberg)

In the juniors

• Aurora Cannabis Cuts Losses As It Continues To Hunt For Savings (theDeepDive)

• CGX Energy To Hand Over Up To 4.7% Interest In Corentyne To Frontera (theDeepDive)

• Retail investors flock to penny stocks WeWork, Amyris, Proterra (Reuters)

• Virgin Galactic Completes First Tourist Space Flight (theDeepDive)

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