News this week: 23 September

News this week: 23 September
Photo by Joshua Rawson-Harris / Unsplash

U.S. would defend Taiwan
Biden says U.S. forces would defend Taiwan in the event of a Chinese invasion.

ETHW on-chain attack
The Post-Ethereum Merge proof-of-work (PoW) chain ETHW team admitted that it had suffered an on-chain replay attack on Sept. 16.

Mortgage rate increases
U.S. average 30-year fixed mortgage rate increases to 6.33%.

SEC claims jurisdiction over ETH
SEC claims US government has jurisdiction over Ethereum network transactions.

ETH contributors were validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. As a result, those transactions took place in the United States.

Nasdaq entry into crypto
NASDAQ, the 2nd largest stock exchange, is planning an entry into crypto with custody services.

Robinhood lists USDC
Robinhood, the financial services company with commission-free,  lists USDC, the stablecoin.

Wintermute hack for $160M
Crypto market maker Wintermute has been hacked for $160,000,000. The company CEO said that the hack happened in its decentralized finance (DeFi) operation however, Cefi and OTC services were unaffected.

Arbitrum One NFTs on OpenSea
Users are able to buy and sell NFTs that live on Arbitrum One directly on OpenSea.

Kraken CEO steps down
Jesse Powell (not related to Jerome Powell, the Fed chairman), steps down of his position as CEO on Kraken, the crypto exchange. Powell founded the company in 2011 and is Kraken's largest shareholder.

FOMC meeting
• The Federal Reserve announced a raise of interest rates by 75 basis points, meeting market expectations.
• It's its third consecutive 0.75% increase, raising the benchmark federal-funds rate to a range of 3.0%-3.25%, the highest since 2008.
• Markets are betting on another 75 bps increase at the next FOMC meeting.

What do rate hikes mean?
These rate hikes by the Federal Reserve mean higher borrowing costs for consumers and businesses. Costlier borrowing makes people spend less, bringing down prices (more info).

Crypto-miner files for bankruptcy
Despite raising $385 million in Feb. 2022, Compute North, one of the largest operators of crypto-mining data centers, filed for bankruptcy. The news comes as miners struggle to survive amid slumping crypto prices, rising power costs, and difficulty levels in mining bitcoin.

Draft EU law could see NFTs regulated as securities
• The European Union's Markets in Crypto Assets (MiCA) draft legislation defines NFTs sold as components of large collections as securities.
• As a result, NFTs will face the same regulatory scrutiny as cryptoassets. According to the bill, NFTs possess little to no unique qualities or utility.