The SEC has launched its long-awaited “innovation exemption,” laying out a framework for blockchain-based trading venues to list and trade tokenized securities.
JPMorgan Abandons Its Middle East Baseline
JPMorgan’s commodities analysts said Thursday that they can no longer establish a reliable baseline scenario for the Middle East conflict.
“For the first time since the start of the Iran conflict, we don’t have a baseline view,” the team said, noting that it remains uncertain how the conflict will ultimately end.
The statement has attracted widespread attention on X as the conflict has become increasingly complicated, with multiple countries and groups involved and no straightforward path toward a resolution.
WTI crude was modestly lower on Thursday but continued to trade above $100 a barrel. U.S. diesel prices also reached a record $6.29 per gallon.
Julian Assange Returns to X
Julian Assange announced his return to X with a brief message: “I’m back.” WikiLeaks posted a similar message shortly beforehand, alongside a photograph of the whistleblower.
The concept of “de-banking” has become increasingly prominent, but WikiLeaks experienced such restrictions years ago. In 2010, Visa, MasterCard and PayPal stopped processing payments for the organization following pressure from the U.S. government.
Assange initially decided against using Bitcoin to raise funds for WikiLeaks after Bitcoin creator Satoshi Nakamoto asked him not to rely on the then-new cryptocurrency, reportedly over concerns that government action could threaten the network.
His family later turned to Bitcoin to help finance his legal expenses.
SEC Move Sends Crypto Stocks Higher
Crypto-linked stocks that suffered losses earlier in the week after the CLARITY Act failed to advance in the Senate moved higher in premarket trading following the SEC’s announcement.
Coinbase (COIN), Circle (CRCL), Bullish (BLSH), Robinhood (HOOD) and Securitize (SECZ) were among the companies posting gains.
The SEC’s “innovation exemption” provides blockchain-based trading venues with a clearer route for listing and trading tokenized securities.
Robinhood CEO Vlad Tenev said tokenization could provide benefits including instant settlement, continuous 24/7 trading and fractional ownership by default.
CleanSpark, CoreWeave Tap Debt Markets
CleanSpark (CLSK) climbed 5% after proposing a $2.227 billion debt offering maturing in 2031.
The company said the funds would help complete its Sandersville data center, reimburse money already invested in the project and provide funds for debt payments.
CoreWeave (CRWV) dropped 2% after announcing a $3 billion convertible debt offering due in 2033, with the transaction potentially expanding to $3.5 billion.
Most of the proceeds are intended for general corporate purposes rather than a particular project. The company also plans to use part of the funds for options designed to mitigate shareholder dilution if the debt is converted into shares.
U.S. Claims Fall as Housing Starts Decline
Initial U.S. jobless claims dropped to 196,000 last week, according to the Bureau of Labor Statistics.
The figure was down from 206,000 the previous week and well below the 208,000 economists had expected. The four-week average also declined to 203,250 from 206,000.
Housing activity continued to weaken. Housing starts fell 2.6% in August to a seasonally adjusted annual pace of 1.275 million, compared with 1.309 million in July and the 1.31 million forecast.
Oil Slips Below $100 on China-Iran Report
WTI crude fell below $100 a barrel for the first time in roughly a week after Reuters reported that China had asked Iranian officials to help contain Yemen’s Houthis.
The request reportedly came after Saudi Arabia sought assistance following military advances by the Houthis.
WTI fell 3% to $99.40 a barrel. The decline in oil prices also helped lower Treasury yields, with the 10-year yield falling 5.4 basis points to 4.95%.
Bitcoin gained 1.15% to $76,900, while Nasdaq 100 futures rose 1.5%.
Wall Street Shrugs Off Fed Rate Hike
U.S. equity futures pointed to a strong opening after the Federal Reserve raised interest rates.
Nasdaq 100 futures were up 1.1%, while S&P 500 and Dow Jones Industrial Average futures each gained 0.9% less than two hours before trading began.
With the latest Fed increase out of the way and another hike largely expected for October, December or both, investors appeared to be returning to risk assets.
The 10-year Treasury yield fell 3 basis points to 4.975%, while the two-year yield slipped 1.4 basis points to 4.71%.
WTI also eased to $100.76 after briefly reaching $107 earlier in the week.
Bitcoin remained near $76,100, roughly unchanged from its level before the rate announcement.
Bank of England Keeps Rate at 3.75%
The Bank of England voted 6-3 to maintain its benchmark interest rate at 3.75%.
Officials warned that the continuing Middle East conflict and higher oil prices could add to inflationary pressure during the first quarter of 2027.
Brent crude remained above $103 a barrel.
Zcash Leads Crypto Rally as $345M Is Liquidated
Zcash surged more than 17% to almost $1,358 during Asian morning trading Thursday, according to CoinDesk data.
Solana and Hyperliquid each gained around 3%, while BNB, Dogecoin and Ether rose roughly 2%. Bitcoin advanced 1% to slightly above $76,400, XRP gained about 1%, and Tron was little changed.
The Federal Reserve raised its target range by 25 basis points to 3.75%-4.00% on Wednesday. It was the first rate increase of the cycle, after markets had assigned the move roughly a 69% probability.
Bitcoin showed little immediate reaction. Alex Kuptsikevich, chief market analyst at FxPro, said the cryptocurrency had already reacted negatively to the CLARITY Act’s failure in the Senate, reducing its sensitivity to additional dollar strength.
According to CoinGlass, 86,816 traders were liquidated during the previous 24 hours, producing combined losses of $345 million.
Short positions accounted for $208 million of those liquidations, compared with $137 million from long positions. Traders positioned for lower prices therefore absorbed the larger portion of the losses.
Ether recorded almost $89 million in liquidations, followed by Bitcoin with $85 million and Zcash with $56 million. The biggest individual liquidation involved an $18 million Bitcoin position on Hyperliquid.
Zcash’s $56 million in liquidations came against a market capitalization of about $23 billion. Traders will now be watching whether leverage builds again through Thursday, given the role increased leverage has played in the token’s recent rallies.
