🌳 Trump Proposes “All Tariff Policy” to Replace Income Tax; SEC Chair Says Spot Ethereum ETF to Be Approved by September

Macro & TradFi

Donald Trump has proposed replacing the U.S. income tax (https://www.ft.com/content/0a661ffb-1b0c-4195-b7cb-98e1f768e0aa) with an "all tariff policy," suggesting that tariffs on imports could fully fund government operations. His proposal includes further lowering the already reduced 21% corporate tax rate and continuing his protectionist trade policies from his previous presidency. This idea, which floated during a meeting with GOP lawmakers in Washington, D.C., marks a significant shift towards a more protectionist trade policy. Trump emphasized the use of tariffs as a strategic tool to exert leverage over other countries considered bad actors.

Elsewhere, Tesla shareholders voted to ratify CEO Elon Musk’s controversial $56B pay package (https://www.ft.com/content/1caa4ad2-2ae5-4edd-9920-45f5e0dc7870) from 2018 at their annual meeting in Austin, Texas. This vote comes five months after a Delaware court ordered the rescission of Musk's compensation package, which was found to have been improperly granted by the board. Despite the legal challenges, the shareholder endorsement serves as a public relations victory for Musk and could influence future court decisions regarding his performance options. The meeting also saw shareholders approve the relocation of Tesla’s incorporation from Delaware to Texas.

At Thursday’s close, the S&P 500 and Nasdaq recorded their fourth consecutive session of record closing highs, primarily driven by significant gains in the technology sector, with the S&P 500 technology sector rising 1.4% and semiconductor stocks increasing by 1.5%. Notably, Broadcom's shares surged 12.3% after the company raised its revenue forecast for semiconductors used in artificial intelligence, also announcing a 10-for-1 stock split. Meanwhile, Nvidia's shares rose by 3.5%. In contrast, the Dow Jones Industrial Average slightly fell by 0.17%, reflecting mixed economic signals, as the Producer Price Index unexpectedly dropped and unemployment claims reached a 10-month high.

DeFi & CeFi

   •   Gary Gensler says ETH ETF should be approved by September

   •   MicroStrategy intends to raise $500M to purchase more Bitcoin

   •   Terraform Labs to end operations, Terra community will take over

   •   European Commission selects Iota Web3 ID for blockchain sandbox

   •   UwU Lend faces second hack during $20M reimbursement process

SEC Chair Gary Gensler informed senators during a budget hearing that the final approvals for Ethereum exchange-traded funds (ETFs) are expected to be completed by this summer (https://www.coindesk.com/policy/2024/06/13/ether-etfs-should-be-fully-approved-by-september-says-sec-chair-gensler/). The process, currently being finalized at the staff level, follows the initial approval of these ETFs and involves completing the registration requirements (S-1 filings). Once these are approved, the ETFs, which will hold actual ether, can be listed for trading. This move parallels the earlier approval process for bitcoin spot ETFs. During the hearing, Gensler reiterated his stance that most digital assets should be considered securities and noted the crypto industry's general noncompliance with registration and disclosure requirements. Meanwhile, CFTC Chair Rostin Behnam confirmed that ether is considered a commodity under his agency's jurisdiction and discussed the CFTC's challenges and needs in regulating the crypto market effectively.

🌳 Trump Proposes “All Tariff Policy” to Replace Income Tax; SEC Chair Says Spot Ethereum ETF to Be Approved by September

Macro & TradFi

Donald Trump has proposed replacing the U.S. income tax (https://www.ft.com/content/0a661ffb-1b0c-4195-b7cb-98e1f768e0aa) with an "all tariff policy," suggesting that tariffs on imports could fully fund government operations. His proposal includes further lowering the already reduced 21% corporate tax rate and continuing his protectionist trade policies from his previous presidency. This idea, which floated during a meeting with GOP lawmakers in Washington, D.C., marks a significant shift towards a more protectionist trade policy. Trump emphasized the use of tariffs as a strategic tool to exert leverage over other countries considered bad actors.

Elsewhere, Tesla shareholders voted to ratify CEO Elon Musk’s controversial $56B pay package (https://www.ft.com/content/1caa4ad2-2ae5-4edd-9920-45f5e0dc7870) from 2018 at their annual meeting in Austin, Texas. This vote comes five months after a Delaware court ordered the rescission of Musk's compensation package, which was found to have been improperly granted by the board. Despite the legal challenges, the shareholder endorsement serves as a public relations victory for Musk and could influence future court decisions regarding his performance options. The meeting also saw shareholders approve the relocation of Tesla’s incorporation from Delaware to Texas.

At Thursday’s close, the S&P 500 and Nasdaq recorded their fourth consecutive session of record closing highs, primarily driven by significant gains in the technology sector, with the S&P 500 technology sector rising 1.4% and semiconductor stocks increasing by 1.5%. Notably, Broadcom's shares surged 12.3% after the company raised its revenue forecast for semiconductors used in artificial intelligence, also announcing a 10-for-1 stock split. Meanwhile, Nvidia's shares rose by 3.5%. In contrast, the Dow Jones Industrial Average slightly fell by 0.17%, reflecting mixed economic signals, as the Producer Price Index unexpectedly dropped and unemployment claims reached a 10-month high.

DeFi & CeFi

   •   Gary Gensler says ETH ETF should be approved by September

   •   MicroStrategy intends to raise $500M to purchase more Bitcoin

   •   Terraform Labs to end operations, Terra community will take over

   •   European Commission selects Iota Web3 ID for blockchain sandbox

   •   UwU Lend faces second hack during $20M reimbursement process

SEC Chair Gary Gensler informed senators during a budget hearing that the final approvals for Ethereum exchange-traded funds (ETFs) are expected to be completed by this summer (https://www.coindesk.com/policy/2024/06/13/ether-etfs-should-be-fully-approved-by-september-says-sec-chair-gensler/). The process, currently being finalized at the staff level, follows the initial approval of these ETFs and involves completing the registration requirements (S-1 filings). Once these are approved, the ETFs, which will hold actual ether, can be listed for trading. This move parallels the earlier approval process for bitcoin spot ETFs. During the hearing, Gensler reiterated his stance that most digital assets should be considered securities and noted the crypto industry's general noncompliance with registration and disclosure requirements. Meanwhile, CFTC Chair Rostin Behnam confirmed that ether is considered a commodity under his agency's jurisdiction and discussed the CFTC's challenges and needs in regulating the crypto market effectively.