Crypto is back.<\/p>\n
A court ruled on Thursday that a token trading on crypto exchanges is not an unregistered security, as the Securities and Exchange Commission had alleged\u2013a decision with broad implications for the beaten-down digital asset industry. <\/p>\n
Shares of broker
\n Coinbase Global
\n shot up almost 25% on Thursday. XRP, the coin in question, spiked more than 60%, and cryptocurrencies such as Cardano and Solana jumped as well.<\/p>\n
Crypto has had a difficult time since peaking in November 2021. Token prices fell most of the following year amid a series of headwinds. The Federal Reserve aggressively raised interest rates, the industry dealt with scandals such as the collapse of the FTX exchange, and regulatory scrutiny intensified. Digital assets have rallied this year, but are still at a fraction of their all-time highs.<\/p>\n
Crypto has some big questions to answer. One is whether it\u2019s good for anything other than making a few speculators rich. Another one, important for potential buyers looking to avoid fraud, is whether crypto should be regulated like a commodity or a security. <\/p>\n
The SEC argues that most crypto is a security, like a stock. For regulation, that means issuers have to provide transparency with regular financial statements. The crypto industry would prefer that coins are treated like a commodity, like a bushel of wheat\u2013in other words, just a thing that is bought and sold that doesn\u2019t rely on the services of others for its value.<\/p>\n
Bitcoin, the oldest and biggest cryptocurrency, is the only crypto that the SEC has suggested is actually a commodity. It still stands to benefit from others taking on the same status because it\u2019s central to the crypto ecosystem.<\/p>\n
This is unlikely to be the last word on the issue. Perversely, the court ruling implies that a cryptocurrency is a security if it\u2019s sold with a contract to institutional buyers, but it\u2019s a commodity when it\u2019s traded on exchanges. But for now, the optimism is palpable that the crypto industry is back in business.<\/p>\n
\u2014Brian Swint<\/em><\/p>\n *** Join Penta senior writer Abby Schultz today at noon when she talks to Amit Bouri, CEO of the Global Impact Investing Network, about the latest research on impact investors. Most investors are finding they can get the financial returns they want alongside the social and environmental benefits they seek. Sign up here.<\/em><\/p>\n Try your hand at the Barron\u2019s crossword puzzle and sudoku games, now running daily along with a weekly digital jigsaw based on the week\u2019s cover story. To see all puzzles, click here. <\/em><\/p>\n The Federal Trade Commission is investigating OpenAI\u2019s ChatGPT, and asking whether the popular chatbot has engaged in \u201cunfair or deceptive practices\u201d by publishing false or disparaging information about people. The agency in its civil subpoena asked OpenAI how it mitigates such risks.<\/p>\n What\u2019s Next:<\/strong> Microsoft is rushing to complete the Activision transaction by July 18, which is next week. The software giant\u2019s President Brad Smith said they will oppose any further efforts to delay the ability to move forward.<\/p>\n \u2014Brian Swint and Janet H. Cho<\/em><\/em><\/em><\/em><\/em><\/p>\n Ericsson Telecommunications suppliers Nokia and Ericsson both struck a downbeat note on demand in market updates on Friday. North America is a particular pain point as telecom companies pull back on spending.<\/p>\n What\u2019s Next:<\/strong> Attention will be on the big three U.S. wireless carriers – Verizon \u2014Adam Clark<\/em><\/em><\/em><\/em><\/p>\n The Biden administration is urging Covid-19 vaccine makers to keep the price of their updated shots for the fall \u201creasonable.\u201d The distribution of Covid-19 vaccines and treatments is moving to the private sector, though pharmaceutical makers haven\u2019t disclosed exact pricing.<\/p>\n BioNTech,<\/span><\/p>\n Moderna,<\/span> What\u2019s Next:<\/strong> The federal government also set up a $1 billion program starting this fall to maximize access to Covid-19 vaccines, tests, and treatments for those who are uninsured or underinsured.<\/p>\n \u2014Janet H. Cho<\/em><\/em><\/p>\n Retailers are heading into the back-to-school shopping season with two different outlooks. The National Retail Federation expects households to boost spending 12% from last year, to a record $41.5 billion. But Deloitte forecasts spending to fall 10%, to $31 billion, as inflation-weary shoppers prioritize necessities.<\/p>\n What\u2019s Next:<\/strong> Timing is everything. The NRF found about half of those it surveyed have started shopping already, but 85% still have at least half of their shopping lists left. Deloitte found that 59% of spending will come before the end of July, because shoppers believe early is better for bargains.<\/p>\n \u2014Janet H. Cho<\/em><\/em><\/p>\n Federal prosecutors charged Alex Mashinsky, the founder and former CEO of bankrupt crypto lending firm Celsius Network, with defrauding customers. He and Celsius also face multiple charges by regulators, which have been trying to tame the crypto Wild West.<\/p>\n What\u2019s Next:<\/strong> The crypto token market is estimated to be around $1.2 trillion, down from nearly $3 trillion at the 2021 market peak. But some crypto executives themselves say that the trillion-dollar estimate isn\u2019t believable because of manipulation on exchanges.<\/p>\n \u2014Joe Light and Liz Moyer<\/em><\/em><\/em><\/em><\/em><\/p>\n Do you remember this week\u2019s news? Take our quiz below to test your knowledge. Tell us how you did in an email to thebarronsdaily@barrons.com.<\/em><\/p>\n 1. Turkey dropped its opposition to allowing which of the following countries to become a member of the North Atlantic Treaty Organization, clearing the path for it to join the Western security bloc.<\/p>\n a. Sweden<\/p>\n b. Switzerland<\/p>\n c. Finland<\/p>\n d. Ireland<\/p>\n 2. Despite rising interest rates making borrowing costs more expensive, people are buying new cars again, weighing on prices for used cars. Prices for used cars fell a record amount in June from the month before, or how much?<\/p>\n a. 3.8%<\/p>\n b. 4.0%<\/p>\n c. 4.2%<\/p>\n d. 4.4%<\/p>\n 3. Meta Platforms\u2019 new microblogging site Threads has been grabbing headlines since it started earlier in July. CEO Mark Zuckerberg said it gathered how many users in the first five days:<\/p>\n a. 70 million<\/p>\n b. 100 million<\/p>\n c. 130 million<\/p>\n d. 160 million<\/p>\n 4. Bank of America has to pay $250 million in fines and restitution after the Consumer Financial Protection Bureau found it liable for doing which of the following:<\/p>\n a. Charging multiple overdraft fees for the same incident<\/p>\n b. Withholding credit card rewards<\/p>\n c. Using customer data to open unauthorized accounts<\/p>\n d. All of the above<\/p>\n 5. Walt Disney brought former CEO Bob Iger out of retirement to fill that role again last fall. This week, its board extended Iger\u2019s contract, saying it will give him more time to oversee a firm restructuring and find a successor. Now when is Iger set to depart? <\/p>\n a. End of 2025<\/p>\n b. End of 2026<\/p>\n c. End of 2027<\/p>\n d. End of 2028<\/p>\n Answers: 1(a); 2(c); 3(b); 4(d); 5(b)<\/p>\n<\/h4>\n
***<\/h4>\n
FTC Asks If ChatGPT\u2019s AI Power Can Harm Consumers<\/h2>\n
\n
\n Microsoft.<\/span>
\n The AI firm\u2019s CEO Sam Altman has asked Congress to create licensing and safety standards<\/strong> for advanced AI systems amid a push to regulate the tools. The Biden administration has discussed strategies to address AI and put checks on tools like ChatGPT.<\/p>\n<\/li>\n
\n Activision Blizzard.<\/span>
\n The agency told the 9th Circuit that the public would be harmed if they can make Activision\u2019s content exclusive.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
\n Nokia,<\/span><\/p>\n
\n Warn of Slowing U.S. Telecom Spending<\/h2>\n\n
\n AT&T,<\/span><\/p>\n
\n and
\n T-Mobile US
\n – when they report earnings toward the end of July, as to how their spending plans are shaping up. While they would like to cut costs, there are still nerves over reports that
\n Amazon
\n might enter the sector which could force them to invest to stave off competition.<\/p>\n***<\/h4>\n
U.S. Wants to Keep Covid-19 Vaccines Accessible, Affordable<\/h2>\n
\n
\n Pfizer,<\/span><\/p>\n
\n and
\n Novavax,<\/span>
\n in a letter on Thursday to prepare enough doses<\/strong> to support wide access, and to be ready to support any surges in demand.<\/p>\n<\/li>\n***<\/h4>\n
Retailers Face Crucial Back-to-School Spending Season<\/h2>\n
\n
***<\/h4>\n
Celsius Network and Ex-CEO Face Multiple Fraud Charges<\/h2>\n
\n
***<\/h4>\n