October 12, 2022|Commentary

Commentary from the Desk: October 12, 2022


This week, the world’s regulators further ramp up efforts to enforce and propose new rules for regulating crypto, while the macro front closely follows Fed moves and the September jobs report.

The Macro Front

  • The September jobs report came back stronger than expected:
    • The U.S. created 263k jobs during the month, down from 315k in August;
    • Unemployment, back to pre-Covid levels, fell from 3.7% to 3.5%;
    • Average hourly earnings climbed 5% from a year earlier, roughly matching economists’ expectations but slowing down slightly from the prior annual reading. Wages had climbed 5.2%in the year through August.

In a sensible world, these numbers would be good for asset prices. However, in the current environment, it gives the Fed room to be particularly aggressive.

  • As it stands, a Fed pivot is seemingly off the table for the time being:
    • The market is expecting a 75bp hike in November, 50bp in December, and 25 basis points in February;
    • September CPI is set to release this Thursday, and will likely be more significant than last Friday’s jobs report.

The Regulatory Front

Crypto is commonly referred to as the “Wild West” by regulators like SEC Chairman Gary Gensler. We strongly support an approach that emphasizes proper, yet fair and well-thought-out regulation that does not stifle innovation across the crypto economy.


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