TheBRRR’s Thoughts

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Quick update on a story we covered on Monday: The company behind Trump’s Truth Social social network changed its stock ticker to DJT on Monday, and we hinted at a potential surge as Trump supporters buy up the stock in a bizarre display of perceived loyalty/patriotism.

Well the stock surged from $50 to $70 at the Tuesday open, and still sits there at the open this morning. The stock will now trade as a memestock - no longer tethered to the fundamentals of the underlying social network, and more directly tied to sentiment surrounding the former president.

Axios covered this phenomenon this morning, comparing it to other memestocks.

Today we’re covering chaos in the FX markets stemming from The Bank Of Japan’s interest rate policy and a breaking story in the Coinbase Vs SEC legal battle.

Bank Of Japan Vows To Support Crashing Yen

WHAT HAPPENED:

• Yen's Historic Low: The Japanese yen plummeted to its lowest value against the dollar since 1990, igniting panic among Japanese officials about its post-rate-hike weakness, which they attributed to speculators.

• Emergency Meeting: In response, the Ministry of Finance (MOF), the Bank of Japan (BOJ), and the Financial Services Agency (FSA) convened an emergency meeting. Following this, statements from Finance Minister Shunichi Suzuki and top currency official Masato Kanda indicated readiness for action.

• Market Reaction: Despite these verbal interventions, the market seemed to challenge the officials' threats, with a close watch on the yen potentially breaching the 152 level against the dollar, a scenario believed to possibly trigger direct market intervention based on past actions.

• Previous Interventions: Japan had previously spent ¥9.2 trillion ($60.6 billion) in 2022 on three occasions to support the yen, without committing to defending any specific currency level. The current situation suggests a potential for dramatic intervention, especially given the near-record bearish positions against the yen held by hedge funds and asset managers.

• International Dynamics: The situation has drawn attention to potential tensions with China, as the People's Bank of China (PBOC) may be losing patience with Japan's currency strategy amidst its own economic challenges.

WHY IT MATTERS:

• Economic Impact: The yen's weakness has broad implications for Japan's economy, potentially making imports more expensive and increasing the cost of living for Japanese households. This puts pressure on policymakers to take action to stabilize the currency.

• Policy Dilemma: The Bank of Japan faces a challenging balance between stabilizing the yen and maintaining easy financial conditions. Recent rate hikes have failed to strengthen the yen, highlighting the difficulty of shifting away from a prolonged period of ultra-loose monetary policy.

• International Relations: Japan's currency maneuvers occur against a backdrop of global economic dynamics, notably with China. Any significant actions by Japan could influence broader market sentiments and have ripple effects on global trade and economic stability.

Bloomberg

Court Denies Coinbase’s Motion To Dismiss SEC Case

WHAT HAPPENED:

• Court Ruling Against Coinbase: A United States court denied Coinbase's motion to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), allowing the regulatory body to continue its lawsuit against the cryptocurrency exchange.

• The SEC's Allegations: The lawsuit, filed in June 2023, accuses Coinbase of operating as an unregistered exchange, broker, and clearing agency. The SEC's case is built on the claim that Coinbase, through its Staking Program, engages in the unregistered offer and sale of securities by listing 13 tokens, which the SEC alleges are securities.

• Coinbase's Defense: Coinbase contested the SEC's authority over crypto exchanges, arguing that the transactions facilitated on its platform do not qualify as securities and thus fall outside the SEC’s regulatory scope.

WHY IT MATTERS:

• Regulatory Oversight: This case highlights the ongoing debate and legal battles over the regulatory status of cryptocurrencies and crypto exchanges in the U.S. It underscores the SEC's stance that certain crypto transactions can constitute investment contracts, making them securities by federal law.

• Impact on the Crypto Industry: The court's decision to let the SEC's lawsuit proceed sends a strong signal regarding the potential for increased regulatory oversight of crypto exchanges. It could set a precedent affecting how other crypto platforms operate and how cryptocurrencies are classified and regulated in the future.

• Next Steps: With the denial of Coinbase's motion to dismiss, both parties are ordered to submit a proposed case management plan by April 19, signaling the continuation of legal proceedings. This development is pivotal for the crypto industry, as it may influence future regulatory actions and the legal framework governing crypto assets.

CoinTelegraph

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.ll