Survey Monday

Is crypto exposure needed for a balanced portfolio? What’s the best type of crypto investment? Is it better to wait until after the results of the U.S. election?

Take the latest survey here and don’t forget to share your thoughts in the WSB comments section.

Crypto First

In a big boost to the crypto community, former President Donald Trump made an appearance at the Bitcoin 2024 Conference in Nashville over the weekend. Note that it is election season, when contenders shore up needed support from swathes of the population, but Trump also described his newfound love from a strategic and geopolitical standpoint. “If we don’t embrace it [crypto and bitcoin technology], China and others are going to be doing it. My vision is for an America that dominates the future.”

Backdrop: Trump wasn’t always that friendly to bitcoin and was far from being an advocate. During his time in office, he said cryptos were a disaster waiting to happen and whose value was based on thin air, while connecting the digital assets to crime-riddled scams and threats to the U.S. dollar. Things started to change after the launch of his NFT collections, and Trump became the first major-party presidential candidate to start accepting crypto campaign contributions in May. There was also an opening to distinguish his platform from the current administration, which has been largely seen as taking an unfriendly stance toward the cryptocurrency industry.

“I am laying out my plan to ensure that the United States will be the crypto capital of the planet and bitcoin superpower of the world,” Trump declared at the event featuring Michael Saylor (MicroStrategy), Cathie Wood (Ark Invest) and the Winklevoss twins (Gemini). “There’s never been anything like it, and most people have no idea what the hell it is. Bitcoin is not just a marvel of technology, as you know; it’s a miracle of cooperation and human achievement. Bitcoin stands for freedom, sovereignty and independence from government coercion and control. If crypto is going to define the future, I want it to be mined, minted and made in the USA.”

Taking action: There were several promises made at the conference, including a pledge to fire SEC Chairman Gary Gensler and appointing a presidential advisory council to issue regulatory clarity that will let the crypto industry “thrive.” Other commitments included shutting down Operation Choke Point 2.0, which refers to the extensive procedures imposed on crypto businesses, as well as eliminating “unclear” or “tough” laws that stifle the sector. He also vowed to create a strategic national bitcoin stockpile, fight CBDCs, defend the right to self-custody, and institute the “responsible expansion of stablecoins to extend the dominance of the U.S. dollar to new frontiers.” Take the WSB survey.

Treasury vs. Fed

By modifying the maturity profile of its debt issuance, the Treasury Department is steering financial conditions and, by extension, the broader economy. That can encroach on the fundamental roles held by the Federal Reserve, according to a new study by Hudson Bay Capital, due to outsized issuances of Treasury bills meddling with the central bank’s ability to contain inflation. The novel tool – dubbed “activist Treasury issuance” – has been a “major market driver over the past year” and is also expected to “continue to play a significant role in the year ahead.” (43 comments)

Next CEO?

Former Rockwell Collins chief Kelly Ortberg is reportedly being considered for the CEO role at Boeing (BA) to succeed Dave Calhoun. The latter will step down by the end of the year amid operational challenges and safety concerns. Ortberg, an aerospace veteran, served as an advisor to RTX’s (RTX) CEO, and led Rockwell Collins and its successor entities for about eight years as it went through mergers and restructuring. Other potential candidates for the top job at Boeing include insiders Stephanie Pope and Steve Mollenkopf, as well as Spirit AeroSystems (SPR) CEO Pat Shanahan. (1 comment)

Over in Caracas

Venezuela is set for more political turmoil as both the ruling party and the opposition claimed victory in the latest presidential election. It comes amid a crippling economic crisis and sanctions that have led to millions of people leaving the country in recent years. “We have serious concerns that the result announced does not reflect the will or the votes of the Venezuelan people,” U.S. Secretary of State Antony Blinken said in a statement. “It’s critical that election officials immediately share information with the opposition and electoral observers without delay and that the electoral authorities publish detailed tabulation of votes.” (2 comments)