Here’s what happened in crypto today
Today in crypto, pro-crypto lawmaker Tom Emmer was elected House Republican minority whip as Democrats prepare to take control of Congress, hotter-than-expected US inflation raised concerns about a potential half-point Federal Reserve rate hike in December, and Coinbase, Kalshi and other trading firms backed the CFTC in a legal battle over perpetual futures tied to US stocks.
Crypto ally Tom Emmer elected House GOP minority whip
Pro-crypto US Representative Tom Emmer has been elected House Republican minority whip, securing the party’s second-highest leadership position as Democrats prepare to take control of Congress in January.
Emmer beat Texas Representative August Pfluger in a 103-76 secret ballot vote, according to Politico. He previously served as House Republican majority whip and will remain the party’s No. 2 leader, this time under incoming Minority Leader Jim Jordan.
As minority whip, Emmer will be responsible for rallying Republican votes, coordinating the party’s legislative strategy and helping maintain unity on key bills.
“Tom has been one of the strongest advocates for digital assets in Congress, and he has led the fight against a government-controlled CBDC and stood up for American innovators,” GOP Senator Cynthia Lummis said on X.
Hot US inflation raises odds of half-point Fed hike in December
Crypto industry experts warned on Tuesday that higher-than-expected US inflation could lead to a another Federal Reserve interest rate hike, making borrowing more expensive and potentially discouraging investment in cryptocurrencies.
The US Consumer Price Index (CPI) rose 0.4% month over month in October, above economists’ forecast of 0.3%, according to the Bureau of Labor Statistics - a slower increase than September’s 0.6% rise. Core inflation, which excludes food and energy prices, rose 0.3%, above the expected 0.2%.
Currently, the Federal Reserve holds its benchmark interest rate at 3.75% to 4.00%, after raising it by a quarter-point in September and leaving it unchanged in October.
The report came just a few hours after Federal Reserve Governor Christopher Waller said in London that another core inflation reading of 0.3% or higher could prompt the Fed to consider a larger interest rate hike in December.
“In that case, I believe a 50-basis-point hike in the policy rate should be considered at the December meeting,” Waller said. “Hiking only 25-basis-points would put our credibility at risk, a risk I am not eager to take.”
Coinbase, Kalshi join lawsuit backing CFTC over US stock perp futures
Coinbase, Kalshi and four other companies asked a federal court Monday to accept a brief backing the United States Commodity Futures Trading Commission (CFTC) in a lawsuit over perpetual futures tied to individual US stocks.
According to a proposed amicus brief shared Monday by Coinbase legal representative Molly Abraham, the group also includes Kraken parent Payward, trading companies DRW Holdings and Jump Trading, and crypto investment company Paradigm Operations. The companies argue that stock perpetual futures fall under existing US futures laws.
The filing comes days after a federal judge found that the CFTC likely “exceeded its statutory authority” in allowing single-stock perpetuals to trade as security futures.
The case could determine whether US exchanges can offer retail traders contracts that track individual stocks without expiring.
On Nov. 3, the CFTC announced that single-stock perpetual futures, or stock perps, could begin trading on US-regulated exchanges for the first time.
The Capital Markets Alliance Association (CMAA), a newly formed trade and advocacy group representing traditional financial market participants and whose members include Cboe and Citadel Securities, sued the CFTC last week, challenging the CFTC’s authority to allow the contracts to trade.