🌳 Donald Trump Offers Potential Cabinet Slot to Elon Musk; SEC Scrutinizes Solana ETFs

Macro & TradFi

Former President Donald Trump (https://www.cnbc.com/2024/08/19/trump-elon-musk-cabinet-ev-tax-credit.html) has expressed a willingness to offer Elon Musk a Cabinet or advisory role in his administration if he wins a second term. Trump praised Musk’s intelligence and indicated he would extend the offer if Musk was interested. However, Trump also signaled that he might eliminate the $7,500 tax credit for electric vehicles, which could impact Tesla’s business. Trump criticized tax credits and incentives, suggesting they may not be effective. This potential policy shift and the offer to Musk come amid a backdrop of Trump's campaign and his upcoming contest against Democratic nominee Kamala Harris in the November election.

Elsewhere, Goldman Sachs (https://www.cnbc.com/2024/08/19/goldman-sachs-cuts-odds-of-us-recession-to-20percent-on-fresh-data.html) has revised its forecast for a U.S. recession, reducing the probability from 25% to 20% following a series of more positive economic indicators. Initially, Goldman had raised its recession odds due to a weaker-than-expected July jobs report, which saw nonfarm payrolls grow by just 114,000. However, subsequent data, including a 1% rise in July retail sales and lower-than-expected jobless claims, eased recession fears. Goldman noted that these indicators suggest the U.S. economy remains robust, prompting a shift in their outlook. They also indicated that a strong jobs report on September 6 could lead them to lower the recession probability further, while a continued improvement in economic conditions might support a smaller 25 basis point rate cut by the Federal Reserve in its upcoming meeting.

On August 19, U.S. stocks extended their winning streak for the eighth consecutive day, with the S&P 500 and Nasdaq Composite closing up 1% and 1.4%, respectively, and the Dow Jones Industrial Average adding 0.6%. The rally reflects easing economic concerns and increasing expectations of Federal Reserve rate cuts potentially beginning next month. Advanced Micro Devices (AMD) surged 4.5% following its acquisition of ZT Systems, while Nvidia (NVDA) gained 4.4% amid favorable analyst outlooks. Conversely, HP (HPQ) and Starbucks (SBUX) declined by 3.7% and 2.7%, respectively, due to valuation concerns and competitive pressures. Investors are now focused on the Jackson Hole Symposium starting on August 23. Additionally, they will also look out for the FOMC Meeting Minutes, which will be released on August 22 at 02:00 SGT.

DeFi & CeFi

   •   SEC talks with ETF issuers over concerns of Solana being a security preceded Cboe removing 19b-4s

   •   Crypto missing from Democrats party platform amid National convention

   •   Solana-based UXD Protocol's DAO is voting on whether to sunset its stablecoin

   •   SEC Chair Gary Gensler is being considered for Treasury Secretary

   •   Coin Center wins right to sue U.S. Treasury, IRS again over controversial tax reporting rule

   •   Infinit unveils 'DeFi abstraction layer,' Babylon phased mainnet launch this week

The SEC engaged in discussions with potential Solana ETF (https://www.theblock.co/post/311937/sec-talks-etf-issuers-concerns-solana-security-source) issuers, expressing concerns over Solana's classification as a security, which led to the Cboe BZX exchange removing related 19b-4 filings. These forms are crucial for ETF approval, and their absence from the Federal Register effectively pauses the approval process, reducing pressure on the SEC to make a decision. Despite VanEck’s continued efforts to argue that Solana functions more like a commodity, regulatory uncertainty remains high, with industry experts suggesting Solana ETFs are unlikely to gain approval under the current administration.

🌳 Donald Trump Offers Potential Cabinet Slot to Elon Musk; SEC Scrutinizes Solana ETFs

Macro & TradFi

Former President Donald Trump (https://www.cnbc.com/2024/08/19/trump-elon-musk-cabinet-ev-tax-credit.html) has expressed a willingness to offer Elon Musk a Cabinet or advisory role in his administration if he wins a second term. Trump praised Musk’s intelligence and indicated he would extend the offer if Musk was interested. However, Trump also signaled that he might eliminate the $7,500 tax credit for electric vehicles, which could impact Tesla’s business. Trump criticized tax credits and incentives, suggesting they may not be effective. This potential policy shift and the offer to Musk come amid a backdrop of Trump's campaign and his upcoming contest against Democratic nominee Kamala Harris in the November election.

Elsewhere, Goldman Sachs (https://www.cnbc.com/2024/08/19/goldman-sachs-cuts-odds-of-us-recession-to-20percent-on-fresh-data.html) has revised its forecast for a U.S. recession, reducing the probability from 25% to 20% following a series of more positive economic indicators. Initially, Goldman had raised its recession odds due to a weaker-than-expected July jobs report, which saw nonfarm payrolls grow by just 114,000. However, subsequent data, including a 1% rise in July retail sales and lower-than-expected jobless claims, eased recession fears. Goldman noted that these indicators suggest the U.S. economy remains robust, prompting a shift in their outlook. They also indicated that a strong jobs report on September 6 could lead them to lower the recession probability further, while a continued improvement in economic conditions might support a smaller 25 basis point rate cut by the Federal Reserve in its upcoming meeting.

On August 19, U.S. stocks extended their winning streak for the eighth consecutive day, with the S&P 500 and Nasdaq Composite closing up 1% and 1.4%, respectively, and the Dow Jones Industrial Average adding 0.6%. The rally reflects easing economic concerns and increasing expectations of Federal Reserve rate cuts potentially beginning next month. Advanced Micro Devices (AMD) surged 4.5% following its acquisition of ZT Systems, while Nvidia (NVDA) gained 4.4% amid favorable analyst outlooks. Conversely, HP (HPQ) and Starbucks (SBUX) declined by 3.7% and 2.7%, respectively, due to valuation concerns and competitive pressures. Investors are now focused on the Jackson Hole Symposium starting on August 23. Additionally, they will also look out for the FOMC Meeting Minutes, which will be released on August 22 at 02:00 SGT.

DeFi & CeFi

   •   SEC talks with ETF issuers over concerns of Solana being a security preceded Cboe removing 19b-4s

   •   Crypto missing from Democrats party platform amid National convention

   •   Solana-based UXD Protocol's DAO is voting on whether to sunset its stablecoin

   •   SEC Chair Gary Gensler is being considered for Treasury Secretary

   •   Coin Center wins right to sue U.S. Treasury, IRS again over controversial tax reporting rule

   •   Infinit unveils 'DeFi abstraction layer,' Babylon phased mainnet launch this week

The SEC engaged in discussions with potential Solana ETF (https://www.theblock.co/post/311937/sec-talks-etf-issuers-concerns-solana-security-source) issuers, expressing concerns over Solana's classification as a security, which led to the Cboe BZX exchange removing related 19b-4 filings. These forms are crucial for ETF approval, and their absence from the Federal Register effectively pauses the approval process, reducing pressure on the SEC to make a decision. Despite VanEck’s continued efforts to argue that Solana functions more like a commodity, regulatory uncertainty remains high, with industry experts suggesting Solana ETFs are unlikely to gain approval under the current administration.