Crypto News This Week: Bitcoin Tumbles After Jobs Report, Kamala Harris PAC Accepts Crypto

This week’s crypto news roundup highlights the newest developments and trends in the cryptocurrency market.

Bitcoin’s price fell below $54,000 on Friday, marking its lowest since early August. The drop followed the release of the U.S. August jobs report, which indicated weaker-than-expected job growth. With 142,000 jobs added, the number fell short of the 160,000 forecast.

While the unemployment rate slightly improved to 4.2%, downward revisions to previous months raised concerns about a potential recession. The broader market also reacted negatively to the report—the S&P 500 and Nasdaq experienced significant losses.

The Future Forward political action committee (PAC), a leading Democratic-leaning PAC, has partnered with CoinbaseCommerce to accept cryptocurrency donations. Initially backing President Joe Biden’s reelection bid, the PAC has shifted its support to Harris after Biden exited the race.

U.S. Posts Disappointing Jobs Report

The U.S. added 142,000 jobs in August versus economist forecasts for 160,000. The unemployment rate edged down to 4.2%, in line with expectations and from 4.3% in July. Nevertheless, downward revisions to previous months raised concerns about a potential recession.

Despite some analysts dismissing these concerns as exaggerated, the uncertainty continues to weigh on risk assets, including Bitcoin.

Bitcoin Price Tests $54,000 Level – Here’s How the Latest US Jobs Report Impacted the Market (Cryptonews)

Harris PAC to Accept Crypto Donations

The Future Forward PAC, which supports Kamala Harris, has partnered with Coinbase Commerce to accept cryptocurrency donations. The move comes after the Trump campaign adopted the platform for crypto donations in May.

Coinbase Commerce Onboards Future Forward, Kamala Harris’s Official Super PAC (99bitcoins)

Telegram Changes Policy After CEO’s Arrest

Telegram now allows for the moderation of private chats on its platform, departing from the app’s traditional stance on user privacy. The change follows the recent arrest of Telegram CEO Pavel Durov in France, where he faces allegations of permitting criminal activity to persist on the messaging platform.

Telegram changes its tone on moderating private chats after CEO’s arrest (The Verge)

UK FCA Rejects Amost 90% of Crypto Applications

The UK’s Financial Conduct Authority (FCA) has revealed that 87% of cryptocurrency registration applications failed to meet the necessary standards for approval. Only four of the 35 applications received by the FCA managed to qualify in the 12 months ended March 31.

UK Financial Regulator Rejects Nearly 90% of Crypto License Applications (Techopedia)

CFTC Seeks Temporary Block on Kalshi’s Election Contracts

The Commodity Futures Trading Commission (CFTC) has requested a federal judge to impose a 14-day injunction against Kalshi’s election contracts. The plea request came after Kalshi emerged victorious in its legal battle against the CFTC, securing the right to offer prediction markets related to congressional elections.

CFTC Pleads With Judge to Block Kalshi Election Contracts for 14 Days (CoinDesk)

Barclays Analyst Upgrades Coinbase and Robinhood

Barclays analysts have upgraded Coinbase and Robinhood, citing their evolved and matured business models as key factors in the positive revisions. Coinbase, in particular, could profit from a friendlier regulatory environment.

Coinbase, Robinhood Upgraded by Barclays Analyst, Citing ‘Matured’ Business Models (Yahoo Finance)

Ripple Co-Founder Joins Harris’s List of Corporate Endorsers

Ripple co-founder Chris Larsen has been added to Vice President Kamala Harris’s growing list of corporate endorsers. He is among the 88 corporate leaders who endorsed Harris to be the next U.S. president in a letter on Friday.

Eighty-eight corporate leaders endorse Harris in new letter, including CEOs of Yelp, Box (CNBC)

Visa and Santander Chosen for Brazil’s CBDC Pilot Phase

Brazil’s Central Bank has selected Visa and Banco Santander to participate in the second phase of its central bank digital currency (CBDC) pilot program. The BCB will oversee 11 projects, while the CVM will supervise two.

Brazil to test digital Real currency with VISA, Santander, and others (ReadWrite)

Siemens Issues $330M Digital Bond

Siemens has successfully issued a $330 million digital bond using a private blockchain network. The one-year bond saw settlement completed in just minutes, using Germany’s Trigger solution, which automates central bank payments through the TARGET 2 system.

Siemens issues €300 million digital bond on blockchain (Finextra)

Uniswap Labs Settles CFTC Charges

Uniswap Labs has settled with the CFTC regarding charges related to the provision of illegal margin trading products. The CFTC had alleged that Uniswap Labs facilitated the trading of margin products that were not compliant with U.S. regulations. Uniswap Labs will pay $175,000 to settle charges.

Uniswap Labs settles with the US CFTC for $175,000 on charges related to derivatives trading (The Block)

Japan Considers Taxing Crypto as Financial Assets

Japan is considering a change to its crypto tax code, potentially lowering it to align with other financial assets. The country’s financial regulator, the Financial Services Agency (FSA), has recently proposed a reform that could lower the tax rate on crypto profits to a flat 20%.

Crypto taxation: The #Japanese government is considering changing the current maximum tax rate of 55% for cryptocurrencies to a unified 20% tax rate in response to investor feedback.

— MartyParty (@martypartymusic) September 3, 2024

Japan’s finance regulator calls for lower crypto taxes in 2025 (Cointelegraph)

Qatar Introduces New Crypto Regulations

The Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) unveiled a regulatory framework for digital assets. The framework is designed to regulate digital assets within the Qatar Financial Centre (QFC) and covers various aspects of digital asset management.

Qatar launches digital assets framework to attract global firms (CryptoSlate)