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Regulation & Policy

Texas has created the first state-funded Bitcoin reserve

Texas has created the first state-funded Bitcoin reserve

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Texas has become the first US state to establish a publicly funded, stand-alone Bitcoin reserve after Governor Greg Abbott signed Senate Bill 21 into law over the weekend.

Unlike Arizona and New Hampshire, which approved similar legislation, Texas allowed the reserve and provided funding for it. The state has allocated $10 million to invest in the Bitcoin reserve.

With this approach, Texas has made a significant step toward the future of finance. 

Trump’s pro-crypto stance attracts more US states to adopt Bitcoin reserves

The Bill 21 requires the state to set up a Bitcoin reserve that operates separately from the main treasury. This aligns with a few other states also looking into digital asset reserves. 

The announcement that Texas has allocated $10 million for a Bitcoin reserve comes months after the Trump administration said it would establish a national crypto reserve.

However, such a vehicle is supposed to be funded strictly by budget-neutral means, such as crypto asset seizures or issuing crypto bonds.

Abbott also signed bill HB 4488, a companion measure that shields the Bitcoin reserve from standard “fund sweeps” into the state’s general revenue.

The legislation changes how states handle digital assets, not just as speculative devices, but as sovereign financial instruments that one might want to hold onto for the long term.

Texas sets up Bitcoin reserve to fight inflation and flex financial muscle

Texas Governor Greg Abbott signed Senate Bill 21 (SB21), which finally allowed the establishment of the Texas Strategic Bitcoin Reserve.

According to the bill’s text, the new reserve will help make the state more financially resilient while acting as a potential hedge against inflation.

In addition, only cryptocurrencies with a market cap of over $500 billion can be included, a threshold only Bitcoin currently has.

The Texas Comptroller of Public Accounts will manage the fund and be guided by an advisory committee with three crypto investment experts.

Aside from direct purchases, the reserve could be filled through forks, airdrops, investment profits, or public crypto donations. A public report listing the fund’s holdings and performance will be issued every two years.

With this, Texas becomes the third state in the US to pass Bitcoin reserve legislation.

Public firms demonstrate a growing trend of purchasing more BTC for their treasuries

Several publicly traded companies follow Michael Saylor’s strategy by adopting Bitcoin as a treasury asset.

For instance, on Friday, June 20, US President Donald Trump’s cryptocurrency adviser, David Bailey‘s Bitcoin holding company Nakamoto Holdings, raised $51.5 million in new funds through a private placement in public equity (PIPE) deal to purchase more BTC. 

Moreover, last week, The Blockchain Group, a technology company listed in Paris, increased its Bitcoin reserves by buying 182 BTC for around $19.6 million. This purchase raised its total holdings to 1,653 BTC. 

Just over the past month, companies have added Bitcoin to their treasuries, a trend that has been documented with the help of data from BitcoinTreasuries. Furthermore, NET shows public companies still have an appetite for BTC.

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UK to pledge 5% of GDP on security by 2035 at NATO Summit

UK to pledge 5% of GDP on security by 2035 at NATO Summit

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UK Prime Minister Keir Starmer has committed to spending 5% of the country’s economic output on security by 2035, aligning the UK with NATO’s ambitious new defense spending target.

The announcement comes as NATO leaders gather in The Hague to adopt the 5% goal—an increase from the alliance’s current 2% target—amid rising global security concerns.

“This is an opportunity to deepen our commitment to NATO and drive greater investment in the nation’s wider security and resilience,” Starmer said in a statement ahead of the summit.

The pledge, seen as a nod to US President Donald Trump’s longstanding calls for European nations to shoulder more defense responsibilities, marks a significant step up from the UK’s current plans to reach 2.6% by 2027, including intelligence spending.

However, the government has not detailed how it plans to meet the 5% goal, especially given that the lion’s share of the increase will occur after the next two general elections.

Broader definition of security to include cyber defense, infrastructure, and borders

As part of the new framework, the UK will broaden its definition of security spending beyond traditional defense to include border protection, critical infrastructure, and supply chain resilience. Starmer’s office said that factoring in these additional categories, the UK will hit 4.1% of GDP on security by 2027.

Despite the expanded scope, the government has no current plans to increase core military spending beyond 2027. Still, the commitment envisions dedicating 3.5% to defense by 2035, leaving the remaining 1.5% for broader security efforts.

Starmer had previously presented his increase in defense spending to 2.5% of GDP as “the biggest sustained rise since the end of the Cold War.” He first hinted at further increases in an interview earlier this month.

NATO allies respond as the UK extends deadline and emphasizes strategic independence

Russia’s ongoing war in Ukraine has intensified calls across Europe to bolster defense budgets, especially with growing uncertainty around the US security posture under a potential second Trump administration.

To that end, Starmer ultimately won a commitment from the NATO Secretary General, Mark Rutte, to extend the deadline from 2032 to 2035.

Most NATO allies will accept the new target. Still, Spain won an exemption through lobbying, demanding the rate be set at 2.1%, arguing that capability, not money, matters. Germany, meanwhile, said it intended to increase its defense expenditure to 3.5% in the next five years.

The UK is also expected to unveil its National Security Strategy this week, alongside a long-awaited review of its ties with China and a new industrial plan.

According to Starmer’s office, the strategy will emphasize competitiveness in areas such as science, education, trade, and advanced technology. It includes £86 billion ($116 billion) earmarked for R&D investment to support technology growth and strengthen protection against cyber threats and sabotage.

Starmer’s office said they would become more unapologetic and systematic in pursuing their national interests, signaling a shift toward greater strategic independence and resilience.

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Spain secured NATO opt-out from 5% defense spending target.

Spain secured NATO opt-out from 5% defense spending target.

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Spain has struck a deal with the North Atlantic Treaty Organization (NATO) to be exempt from a commitment to spend 5% of its gross domestic product on defense, Prime Minister Pedro Sanchez said Sunday, June 22.

In a televised address, Sánchez argued that such a spending level would be “unnecessary and disproportionate.”

Earlier on Sunday, diplomats said NATO’s 32 member states had agreed on a summit statement setting a 5% of GDP target for annual defense and security spending by 2035, despite Spain’s objections.

Sanchez had informed NATO chief Mark Rutte of his country’s desire to opt out of a new 5% spending target in a letter sent Thursday, June 19. The letter expressed worries that Spain might disrupt the entire summit.

According to Sanchez, they completely understand that other countries want to boost their defense spending, but they will not do that. This statement was made after he noted that Spain can fulfill all its NATO commitments for personnel or equipment by only spending 2.1% of its GDP. 

Meanwhile, it is worth noting that Spain spent about 1.28% of its GDP on defense last year, which was the lowest amount in the alliance, according to NATO estimates. In April, Sanchez agreed to speed up efforts to reach NATO’s goal of 2% this year. 

NATO has not yet made the compromise summit text public. It will only be official once the leaders of NATO’s 32 member countries approve it at the summit. 

However, diplomats mentioned that changing the wording from “we commit” to “allies commit” helped Spain argue that the promise does not apply to every member. 

President Trump increases defense spending to 5% for NATO members

US President Donald Trump demanded a big increase in NATO’s defense spending target of 5% of gross domestic product.  

This was after NATO chief Mark Rutte suggested the target be reached by increasing NATO’s key target for defense spending from 2% to 3.5% of GDP, while spending an additional 1.5% on related areas such as cyber security and modifying roads and bridges for military vehicles.

NATO officials argue that substantial hikes in defense spending are needed to meet the increasing threat from Russia and permit Europe to assume more responsibility for its security, as the United States shifts its strategic focus to China.

Sanchez maintains his decision despite Trump’s threats

When Sanchez announced that Spain would not comply with the new defense spending target, he risked provoking Trump. Earlier, the president repeatedly emphasized that European countries fall short of their defense budget target. Trump said he would not defend them if they failed to reach this target.

In addition, Trump warned Spain on Friday, June 20, that they must meet their target, pointing out that Madrid is notorious for its low defense spending.

However, according to him, this would not apply to the US because it had paid a large amount of money over a long period. In 2024, NATO says that Washington devoted approximately  3.19% of its GDP to defense.

Still, Sanchez said Spain did not have to achieve the new target and that trying to do so would result in drastic cuts in spending on social services such as state pensions or tax rises.

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Britain’s new industrial strategy pledges massive development to the country's economy

Britain’s new industrial strategy pledges massive development to the country’s economy

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The British government intends to slash the bills of electricity-intensive manufacturers by up to 25% from 2027. As part of an industrial strategy for the decade 2025-2035, this move could benefit more than 7,000 businesses, according to the government.

Britain will seek to slash the electricity bills of thousands of companies under a new industrial strategy to be published on Monday, June 23. 

This was after hearing calls from businesses to reduce high energy costs, which they argue hurt competitiveness and hinder growth.

Britain’s new industrial strategy pledges massive development to the country’s economy 

Ramping up Britain’s sluggish growth has been a top priority for the government. However, lawmakers and business leaders had flagged the sky-high energy costs many companies already endure as a barrier to that ambition, with industry body Make UK urging the government to abandon climate levies placed on companies.

To address this, Britain has been encouraged to do more to help its important industrial sectors. This will go a long way in improving its competitive edge as the United States and the European Union are also moving in that direction, in a trading world that the US President Donald Trump’s tariffs shook in recent months.

Meanwhile, five sectoral strategies will be released alongside the plan, including advanced manufacturing, creative industries, and clean energy. The industrial strategy highlights eight key sectors where Britain excels, including defense and financial services. 

The government added that it would spare energy-intensive manufacturers from levies such as the renewables obligation to strengthen their international competitiveness.

It also said that the energy measures would be paid for by transforming the energy system, not by ramping up household bills or taxes. Once they consult with stakeholders, they will fine-tune the details and eligibility of the program.

Jonathan Reynolds, the Secretary of State for Business and Trade, commented on the topic of discussion. Reynolds highlighted that addressing energy costs and improving skills have been the top requests from businesses and their biggest challenge. Therefore, according to him, this government has taken note.

Furthermore, Make UK described the industrial strategy as a “huge and necessary step forward,” addressing the skills gap in Britain’s workforce and access to funding. The Confederation of British Industry called it a “clear, positive message” that would lay a strong foundation for growth. 

This industrial strategy, Britain’s first in eight years, aims to increase the British Business Bank’s ability to invest in smaller companies and provide an additional 1.2 billion pounds, worth $1.61 billion annually, for skills development by 2028-2029. 

PM Sir Keir Starmer calls the new industrial strategy a “turning point” for the nation’s economy

Prime Minister Sir Keir Starmer said the industrial strategy is a “turning point” for Britain’s economy by backing key industries capable of growth.

However, the Conservatives’ acting shadow energy secretary, Andrew Bowie, has criticized the strategy. According to Bowie, the UK needed a serious approach to energy policy that tackles the root cause of our high energy prices.

He stated that it was amazing that “Labour” is finally recognizing that net-zero costs are so high that they need to spend billions of pounds of taxpayers’ money to help businesses pay their energy bills and prevent them from going bankrupt.

Notably, UK manufacturers now face some of the highest electricity prices in the developed world.

A new British Industrial Competitiveness Scheme would reduce costs by up to £40 per megawatt-hour from 2027. In addition, around 500 energy-intensive companies, such as those in the steel industry, chemicals, and glassmaking, will see their network charges reduced.

Interestingly, these companies are already receiving a 60% discount under the British Industry Supercharger scheme, which is set to rise to 90% after 2026.

Monday’s announcement will also include moves to accelerate how long it can take to connect new factories and projects to the energy grid.

The prime minister stated that the industrial strategy provides companies with the long-term certainty and direction they require to invest, innovate, and create good jobs that help people earn more money. It also seeks to help create over one million new well-paid jobs in the next ten years. 

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Bank of America flags Australian bonds as big winners in post-dollar world

Bank of America flags Australian bonds as big winners in post-dollar world

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Bank of America is pointing global investors toward Australia, predicting that its sovereign bonds are poised to outperform in what it calls a “post-dollar” world.

In a research note released Wednesday, FX strategists Oliver Levingston, Adarsh Sinha, and Janice Xue highlighted Australia’s fixed-income market as a likely hotspot for capital inflows amid ongoing global de-dollarization.

“De-dollarization was a major theme on our trip to the United States and Canada, and we continue to highlight the significant impact small shifts in global fund managers’ asset allocations could have on the demand profile for AUD fixed income.”

The note makes the case that Australia’s relatively small bond market could experience dramatic price swings if global investors keep fleeing U.S. dollar-denominated assets.

Investors have been looking for more sound and undervalued alternatives as the greenback has lost its previously unassailable haven status, particularly after almost a year of political and economic tumult under President Donald Trump.

Investors dump dollar amid Trump-era volatility

The report directly attributes the trend to increasing global discomfort with U.S. financial stewardship. The re-emergence of Donald Trump on the political scene, along with a fresh wave of belligerent trade policies and what the bank calls “economic nationalism,” has only hastened investor diversification.

Trump’s declaration of sweeping tariffs earlier this year, which markets dubbed “Liberation Day,” set off a global market selloff. Investors stampeded to pull out of U.S. markets, anxious about protracted uncertainty and trade isolationism.

This “Sell America” movement was marked by heavy selling of Wall Street stocks, U.S. Treasurys, and even the dollar itself. The U.S. dollar index (DXY), which measures the greenback against a basket of leading currencies, has slid by about 9% year-to-date in 2025, its most significant decline in over 10 years.

Investor conviction in the dollar is non-existent; as Bank of America’s June Global Fund Managers Survey showed, 86% of respondents believe the dollar will devalue in the coming 12 months, a new record low.

The report found fund managers with less of a long-dollar bias than at any time in the past 20 years. Almost 20 percent of the 222 managers polled with $587 billion under management said that betting against the dollar was the most “crowded trade” globally.

This loss of confidence has paved the way for other currencies, particularly those linked to stable economies rich in raw materials like Australia, to gain the favor of global reserve managers and institutional investors.

Central banks boost demand for AUD bonds

Now, Australia is feeling the consequences of that change in sentiment. Its 10-year government bond yield is about 4.24%, which is not that different from the U.S. equivalent of 4.43%. But Bank of America sees this gap widening in the years ahead.

By late 2026, the bank predicts that Australian bonds will have a 75 basis point spread, which would entail stronger demand and higher prices.

The note said that the demand outlook for AUD fixed-income assets appeared strong with support from Australia’s growing superannuation funds and the possibility of bank deregulation.

One big reason is the rising demand for “peripheral dollar bloc assets,” consistently stable currencies in faraway lands from American politics, supported by strong local fundamentals. The proportion of official reserves in Australian dollars has doubled in the past ten years. The strategists estimate that a 1-percentage-point lift in global reserve demand would absorb 185% of the net supply of Australian sovereign bonds for the current fiscal year.

Australia’s large pension funds have also been moving into the local bond market with increasing vigor. These superannuation funds are internationalizing their balance sheets, and the demand for AUD-denominated assets flows.

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Will deposit tokens like JPMD make stablecoins obsolete for institutional use?

Will deposit tokens like JPMD make stablecoins obsolete for institutional use?

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JPMorgan Chase has created a new digital currency called JPMorgan Deposit Token (JPMD) that lives on the blockchain and is only available to trusted institutions like large corporations, asset managers, and pension funds.

JPMD will cater to institutions that want the legal protections, interest payments, and bank integration that regular stablecoins don’t fully offer to move money quickly, safely, and around the clock. 

JPMD combines traditional banking features with blockchain speed and access on a public blockchain (Base, built on Ethereum) to attract big institutions who fear stablecoins like USDC or USDT will raise concerns about regulation, stability, and trust.

But will deposit tokens like JPMD completely replace stablecoins for institutional use, or will they simply serve different purposes and grow side by side?

How are deposit tokens different from stablecoins?

Deposit tokens fit into commercial banks’ existing financial and legal framework because they come with added benefits, like deposit insurance, interest payments, and accounting clarity for managing large volumes of funds.

On the other hand, stablecoins don’t enjoy the same trust or integration with banks because the US Congress is still debating the rules around using and backing them.

In addition, the openness and availability of stablecoins for trading, remittances, lending, DeFi protocols, and as a fast way to store and move value across borders have helped them grow into a $260 billion market.

Constrastly, deposit coins set large transactions, enable tokenized securities, handle business-to-business payments, and manage digital cash in a way that ties back to a real-world bank account to serve the complex needs of institutions.

So, while stablecoins operate outside the bounds of traditional finance and serve a wide global audience, deposit tokens help the banks move money faster and more efficiently within the trusted, regulated walls of the banking system.

Why does JPMorgan believe JPMD is better for institutions?

JPMD combines the convenience of blockchain with the confidence and structure of commercial banking for institutional users who need digital money that moves fast but also complies with strict legal, financial, and operational standards.

JPMorgan hosts JPMD on the Base blockchain (a public Layer 2 network built by Coinbase on top of Ethereum) to protect it from misuse or unwanted exposure and allow only verified institutional clients to interact with the system.

This way, the bank creates access to faster settlements and lower fees while controlling who uses the token through permissioned access. The Base blockchain bridges JPMD to future blockchain use cases with its connection to Ethereum’s broader ecosystem.

Businesses can also use JPMD in treasury operations, accounting systems, and financial reports without the extra friction that comes with third-party stablecoins. This is because the token allows them to treat it like cash they already hold in their JPMorgan accounts.

Accountants, CFOs, and risk officers can easily trust, track, and report JPMD tokens because they are tied directly into the bank’s own infrastructure. This differs from stablecoins that sit outside the banking system and may raise questions about compliance or reserve backing.

JPMorgan also said JPMD will likely pay interest while still providing instant settlement and on-chain liquidity. This will make it more appealing as a long-term financial tool for institutions with large cash balances and wanting their funds to generate yield. The token may also become insured like bank deposits to reduce risk and offer a level of protection that stablecoins currently can’t match in high-value transactions.

Moreover, JPMD makes it easier for institutions to incorporate blockchain-based transactions without overhauling their internal workflows or facing delays due to incompatible systems. The token integrates seamlessly with enterprise treasury platforms, payment processing tools, and settlement engines. It also supports financial reporting systems to manage cash flow, settle trades, facilitate cross-border payments, and ensure regulatory compliance.

Businesses can also settle payments across jurisdictions instantly with JPMD to reduce delays, high costs, and limited operating hours in cross-border business-to-business (B2B) payments and tokenized asset settlements.

What could stop deposit tokens from taking over?

Deposit tokens have less potential as a universal digital cash solution because JPMD is only available to pre-approved institutional clients connected to the bank. While anyone with a crypto wallet can access and use stablecoins, the permissioned nature of deposit tokens prevents smaller businesses, startups, or individuals from accessing the token, despite it running on a public blockchain.

Banks using or issuing these tokens may face strict capital requirements and other compliance burdens. This is because current Basel guidelines classify digital tokens operating on public, permissionless blockchains as high-risk assets.

These institutions may be constrained by rules that make large-scale deployment expensive, risky, or not worth the effort, unless the Basel Committee updates its guidance or makes exceptions for well-structured deposit tokens.

Moreover, JPMD may end up being siloed within a limited ecosystem because many institutions and platforms may prefer Ethereum mainnet, Polygon, Avalanche, or private blockchains for their digital asset strategies over its Layer 2 network built on Ethereum (Base). 

In contrast, Stablecoins like USDC and USDT are highly attractive to developers, fintech companies, crypto exchanges, and users in emerging markets who want to move value across platforms without worrying about permissioned access or network compatibility. These stablecoins operate on multiple blockchains, including Ethereum, Solana, and Tron. They have a wide global reach,  widespread wallet support, and integration with decentralized applications.

Similarly, smaller firms, fintechs, and international businesses may not have the technical infrastructure, legal clarity, or compliance capabilities that large institutions require to work with a permissioned token tied to a US bank. Firms operating in multiple regions or jurisdictions may not want to maintain a relationship with a specific bank to undergo a complex onboarding process. 

It may be difficult for deposit tokens to reach the scale and utility that stablecoins have already achieved when their growth is limited to a small circle of elite users. JPMD and similar tokens remain too tightly linked to individual banking ecosystems.

Stablecoins and deposit tokens will likely grow side by side

The infrastructure around digital tokens and stablecoins will decide which models succeed and at what scale as banks, governments, and global companies continue to experiment with tokenized assets, digital payments, and programmable money.

Both stablecoins and deposit tokens could grow together, serving different types of users and use cases if public blockchains become widely accepted as safe, reliable environments for moving real-world value. 

It’s unlikely that either stablecoins or deposit tokens will completely replace the other, so the more realistic outcome is coexistence. Deposit tokens will likely dominate in highly regulated, high-value environments where trust, control, and integration with existing systems are essential. On the other hand, stablecoins will continue to lead in areas where openness, speed, and accessibility matter most, such as retail payments, global remittances, and decentralized applications.

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Thailand opens public consultation on crypto token issuance framework

Thailand opens public consultation on crypto token issuance framework

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Thailand’s Securities and Exchange Commission (SEC) has launched a public consultation on proposed rules allowing exchanges—or individuals affiliated with them—to issue utility tokens.

Crypto exchanges would be asked to provide the identities of individuals belonging to a company that issues tokens under the proposal. This announcement is intended to assist the SEC in monitoring and investigating possible insider trading activity, a serious problem for the increasingly international digital asset market.

The action is a part of Thailand’s continued development of crypto regulation. The country has tried to promote and clamp down on the industry recently. Among these were plans announced in May to open the country to tourists to use cryptocurrencies, signalling a greater willingness to adopt digital assets.

But just days later, authorities closed off access to the crypto exchanges OKX and Bybit, citing unlicensed activities and money laundering concerns.

Thailand courts global crypto investors with bold 5-Year tax break 

Just a few days ago, Thailand scrapped capital gains taxes on cryptocurrency sales for five years, in its boldest move yet to become a leading global hub for digital assets.

The Thai Cabinet approved the tax exemption, waiving personal income taxes on profits from crypto sales through licensed digital asset service providers. The policy will take effect from January 1, 2025, through December 31, 2029.

Deputy Finance Minister Julapun Amornvivat called the decision a pivotal step toward Thailand’s vision of becoming “one of the world’s financial hubs.” The government hopes the tax break will draw crypto firms and investors away from established centers like Singapore and Dubai, cementing Thailand’s place on the global digital finance map.

Thailand continues to position itself as “one of the first countries in the world to implement laws governing digital assets and related taxation,” according to Deputy Finance Minister Julapun Amornvivat.

The government expects the new tax exemption to deliver strong economic returns, with the Finance Ministry projecting that crypto assets could expand the Thai economy and boost tax revenues by at least 1 billion baht (approximately $30.7 million) over the medium term.

Industry analysts believe the potential upside may be even greater, citing Thailand’s status as home to Southeast Asia’s second-largest concentration of crypto holders.

“Thailand crypto HODLers are holding $180 billion, and clear regulations and tax reforms will help people to hold more crypto assets,” Jagdish Pandya, founder of Blockon Ventures and organizer of Thai Blockchain Week 2019.

Thailand’s crypto reforms aim to boost market confidence 

The latest regulatory push also appears to be informed by past incidents. In 2022, Thailand faced its own insider trading scandal when the SEC accused the CTO of Bitkub—one of the country’s largest crypto exchanges—of using confidential information to profit from token sales ahead of a major deal.

Insider trading, defined as buying or selling securities based on non-public information, is widely considered illegal across financial markets. Enforcement in the crypto space has gained momentum globally. In 2021, OpenSea’s former Head of Product, Nate Chastain, was charged and later convicted for front-running NFT listings on the platform, receiving a three-month prison sentence. Similarly, three former Coinbase employees were indicted in 2022, with two serving time for leveraging non-public token listing details.

More recently, Binance suspended a staff member in March following an investigation into alleged insider trading, and blockchain analysts have flagged suspicious trading activity related to US President Donald Trump’s memecoin (TRUMP), prompting speculation of insider behavior.

Thailand’s SEC says the consultation period will give the public a chance to weigh in on how best to structure the issuance of utility tokens and prevent illicit practices in an increasingly complex market.

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Trump says he regrets taking advice to hire Powell

Trump says he regrets taking advice to hire Powell

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President Donald Trump unloaded his longest attack yet on Jerome Powell on Friday evening, five months after moving back into the White House.

Speaking via Truth Social, Trump said he should’ve never made Powell head of the Federal Reserve and once again blamed him for costing the US up to $1 trillion a year by keeping interest rates too high. He said, “Too Late Powell complains about costs, much of which were produced by the Biden Fake ‘Government.’”

Trump added that Powell should cut rates to between 1% and 2% immediately. He said this would save the country massive amounts in interest payments. “That ‘numbskull’ would be saving the United States of America up to $1 Trillion Dollars per year,” Trump posted.

Trump says he regrets taking advice to hire Powell

The president claimed he tried “nice, neutral, and nasty” approaches to pressure Powell but said only being nasty got attention. He wrote, “He’s a dumb guy, and an obvious Trump Hater, who should have never been there.”

Trump said he took bad advice when he picked Powell and said Biden made a mistake by keeping him. Trump also said inflation is no longer a concern and the economy is growing fast with factories opening and new tariffs bringing in strong revenue.

He said the Fed should take advantage of this moment and drop rates. “If he was concerned about inflation or anything else, then all he has to do is bring the rate down, so we can benefit on interest costs, and raise it in the future when and if these ‘other elements’ happen (which I doubt they will!),” Trump said.

The rant ended with Trump calling Powell a “total and complete moron” and saying the Federal Reserve Board should override him. He also hinted, again, that he might fire him. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his Term ends shortly!” Trump then posted the custom-made image of comparison below for extra theatrics:

Trump-Powell
Source: Office of the President of the United States

Waller pushes for July cut while others urge patience

According to Reuters, this came just hours before Powell and other Fed officials spoke publicly for the first time since holding interest rates steady this week. The Fed decided to keep rates between 4.25% and 4.5% for now. Behind the scenes, policymakers are split on what to do next. Some believe inflation is still too high. Others want to cut rates soon.

Christopher Waller, a Fed Governor, said Friday on CNBC that he believes inflation isn’t a real threat right now and that the Fed should move forward with cuts as early as next month. “The data the last few months has been showing that trend inflation is looking pretty good,” Waller said. He also said rising tariffs will not create serious inflation. “Any tariff inflation… I don’t think is going to be that big and we should just look through it in terms of setting policy,” he added.

Waller said the Fed shouldn’t sit around and wait for the labor market to get worse. He pointed to signs of stress, including high unemployment among recent college graduates. “I’m all in favor of saying maybe we should start thinking about cutting the policy rate at the next meeting,” he said.

Mary Daly, who runs the San Francisco Fed, offered a more middle-ground view. She told CNBC that a fall rate cut might make sense, but not in July. “A rate cut in the fall would be more appropriate,” she said, unless the labor market weakens faster than expected. She also warned that tariffs could push up costs but said businesses might absorb the hit instead of passing it to buyers.

Daly warned against rushing into cuts without solid data. But she said the Fed also can’t ignore how much the economy is cooling. “We cannot wait so long that we forget that the fundamentals of the economy are moving in a direction where an interest rate adjustment might be necessary,” Daly said.

The latest projections from the Fed show a near 50-50 split. Eight officials expect two rate cuts this year. Seven think there should be none. Those expecting cuts believe the September and December meetings could be the moments to act. The rest want to keep things where they are.

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Australia advances a social media ban for minors under 16

Australia advances a social media ban for minors under 16

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Australia is moving closer to implementing what could be the world’s first national ban on social media use by children under 16, marking a potential setback for major platforms like Meta (Facebook, Instagram) and TikTok.

The move follows a key government-backed trial that confirmed it is technically feasible to verify users’ ages and integrate those checks into current digital platforms. However, some tech companies remain skeptical about the reliability of age-detection technologies. With the trial results now in, the legislation is on track to be implemented by the end of the year.

Tony Allen raises concerns about protecting those under 16 from social media 

Following the social media ban, analysts have speculated that the findings could help clear a legal pathway for other jurisdictions to follow Australia’s example. This speculation has been raised in the era when nations around the world struggle to figure out how to shield children from harmful content online.

The Age Assurance Technology Trial, which the government commissioned, highlighted that age verification can occur in Australia and be private, strong, and effective.

Tony Allen, the project director of the trial, weighed in on the situation. Allen highlighted that no major technological obstacles prevent 16-year-olds from getting social media accounts. Therefore, based on his argument, these solutions are technically possible, can be easily added to current services, and can help protect children’s safety and rights online.

The trial examined various approaches and technologies, such as facial scans, inferring a user’s age from his or her behavior, age verification, and parental controls.

“We discovered many different methods that work for various situations, but we did not find one solution that would work for every case,” the trial stated. 

Australia considers imposing bans on social media for minors 

Australia considered banning social media for kids under 16 after a massive debate consumed the nation. The move sets a standard for other countries worldwide and is one of the most stringent regulations for big tech companies.

According to polls, the ban was opposed by privacy campaigners and some child rights groups, but 77% of the population supported it.

A parliamentary inquiry was held in 2024 to hear from parents whose children had self-harmed as a result of being bullied on social media. In the meantime, the domestic media campaigned for a ban led by Rupert Murdoch’s News Corp, the largest newspaper publisher in the country, under the banner “Let Them Be Kids.”

This ban was, however,  likely to test Australia’s delicate friendship with its most important ally, the United States. Apart from this, the ban had also raised conflict between Australia and some of the tech giants based in the US.

Earlier, Australia forced social media platforms to pay news organizations for their content, and now it wants to fine those companies if they do not take down online scams.

Elon Musk, the owner of X, commented on the situation. In a post, Musk said this seemed like a backdoor method to manage how all Australians access the internet.

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Italy slams EU budget rules as senseless

Italy slams EU budget rules as senseless

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Italy has launched a stinging attack on the EU’s fiscal rules, describing them as “old and outdated,” arguing they are unfair at a time when countries feel compelled to spend more on defense. 

On Thursday, Italy’s economy minister, Giancarlo Giorgetti, called the bloc’s current budget system “stupid and senseless” and said it needed to be overhauled to give member states more leeway to boost military spending without fear of financial penalties.

Those comments came as the eurozone finance ministers assembled in a critical meeting in Luxembourg, where the bloc is fighting over whether to maintain a balanced budget or step up its investment in Europe’s security while being urged to ease its focus on fiscal discipline.

Most recently, the European Commission has debuted new clauses permitting greater leeway in the bloc’s fiscal rules, or the Stability and Growth Pact. The goal is to allow governments to expand defense spending in the face of growing security threats, particularly from Russia.

Members would agree to be permitted to increase their defense budgets by 1.5% of GDP annually over four years. This holds even if their national budget deficits break the EU’s longstanding 3% of GDP limit, which usually prompts correction.

However, this new leeway would only be relevant for countries not already under EU disciplinary procedures over debt. It would leave out Italy, the country now receiving all the attention.

“It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless,” the minister said in a statement issued by his staff on the sidelines of a meeting with Eurozone peers in Luxembourg.

He insisted that Italy was being punished for its past deficits, even as it tried to play its part in Europe’s collective defense.

Rome resists a flexibility clause to protect its financial reputation

Italy has pledged to reduce its budget deficit from 3.4% of GDP in 2024 to 2.8% by 2026. Embracing the EU’s new defense spending flexibility might support NATO efforts, but would make it impossible for Italy to achieve that fiscal goal.

Two of the Italian government’s most senior figures seconded his concerns, and they also said that Rome wanted to avoid taking any measures that could put its relationship with the financial markets under pressure. Investors have noticed Italy’s policing of its budget, and credit rating upgrades in recent months have reflected that progress.

In May, Moody’s upgraded Italy’s credit outlook to “positive.” That came just after S&P Global raised the country’s credit rating to “BBB+” from “BBB,” a show of confidence in Italy’s economic management.

Giorgetti cautioned that applying different criteria to different countries risked dividing the EU at a time when it needed to come together.

Italy pushes EU to fund defense through joint debt

Giorgetti said it was more necessary than ever to have a common financial capacity to address Europe’s growing defense needs. He added that Italy wanted the European Union to borrow jointly to increase military spending, arguing that this approach would share the financial burden across all member states instead of placing excessive pressure on individual national budgets.

However, such a plan would require the approval of other EU nations, which is a prospect that looks uncertain. Fiscally conservative countries such as Germany and the Netherlands have long opposed the idea of mutualized EU debt and argued that each country should be responsible for its finances.

For countries like Italy, it has become a fiscal juggling exercise between meeting NATO accession commitments, respecting EU budget rules, and keeping financial markets on the side.

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