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Analysis: After the midterm elections, the Federal Reserve's focus will shift to controlling inflation; if the conflict in Iran ends, there will be no need for another interest rate hike

Some observers of the Federal Reserve believe that Trump's strong opposition from voters in the midterm elections may alleviate the political pressure faced by Federal Reserve Chair Waller, allowing him to reduce political interference and focus on controlling inflation. Voters have listed the cost of living as one of their top concerns, fundamentally changing the political landscape surrounding the Federal Reserve.Since Trump's re-election in 2024, he has been exerting pressure on the Federal Reserve and its interest rate decisions, repeatedly calling for rate cuts, supporting an unprecedented criminal investigation into the renovation of the Federal Reserve's office building, and attempting to remove a sitting Federal Reserve governor. Against this backdrop, Trump chose Waller to lead the Federal Reserve in May of this year, after Waller had unusually shifted to support rate cuts. This has raised concerns among Democrats, who fear that the new chair may have agreed to adjust monetary policy according to the president's wishes.Claudia Sahm, Chief Economist at New Century Advisors, stated that in fact, if the election results prompt Trump to end the conflict with Iran and abandon further tariff increases, the Federal Reserve may not need to raise interest rates again at all.

first_img EU Technology Chief: The EU AI Act is Sufficient to Address Uncontrolled AI Risks

European Union technology chief Henna Virkkunen stated that the EU's current artificial intelligence regulatory rules are sufficient to address the risks posed by uncontrolled AI entities. In an interview with Reuters on Friday, she mentioned that the safety and security of powerful models is a hot topic internationally, and Europe is well-prepared in this regard.The EU's Artificial Intelligence Act regulates based on risk levels and is one of the strictest AI regulatory frameworks in the world, having been passed two years ago. Virkkunen dismissed critics who believe the EU's AI rules are outdated, stating that the legislation covers the entire lifecycle of these models, and regulators are providing model evaluation guidelines for companies based on the recommendations of 60 AI experts.Previously, incidents involving OpenAI and Anthropic raised global concerns about the potential for uncontrolled AI entities to escape human control. The European Commission had requested detailed information about safety and security measures from over 30 unnamed AI companies at the end of August, and Virkkunen indicated that they are currently assessing these responses. Anthropic CEO Dario Amodei previously stated in a blog post that the rapid pace of AI development could, if left unchecked, "exceed our understanding and control systems capabilities."

first_img Hacken Report: Half of USDT is controlled by only two signing keys

Blockchain security company Hacken released an assessment report indicating that approximately half of the circulating USDT (about $91.3 billion on the Tron network) is controlled by a 2-of-3 multi-signature contract, which lacks built-in delays, cancellation processes, or reliable revocation mechanisms. Attackers only need to compromise two signature keys to change contract ownership, mint tokens, freeze addresses, clear frozen balances, or set transfer fees without accessing any user wallets. Hacken also discovered that Tether reuses the same set of six signature keys across three chains: Ethereum, Avalanche, and Celo, posing a risk of cross-chain spread.Meanwhile, stablecoin rating agency Bluechip upgraded Tether's company rating from D to C, citing that KPMG's audit showed Tether's reserves exceeded liabilities by $6.8 billion as of December 31, 2025. This is the first time Bluechip has adopted the expanded SMIDGE methodology, which incorporates Hacken's technical risk analysis. However, Hacken only gave USDT a cybersecurity score of 3.3 out of 10 and pointed out that the USDT smart contract does not have automatic reserve proof checks or a token minting cap. Once signers authorize a transaction, the contract can mint an unlimited number of tokens without a bank reserve proof.Hacken stated that it has not yet completed an equivalent assessment of Circle's USDC, and Bluechip's previous B+ rating for USDC was based on an old methodology, which cannot be directly used for technical comparison.

Report: The concentration of the DeFi treasury market is significant, with the top 5 managers controlling 69% of the funds

Vaults.fyi released the report "2026 DeFi Custody Market Status," covering 856 vaults, 131 custodians, and 18 protocols, with a total locked value of approximately $11.29 billion. Over the past year, the TVL on the supply side of DeFi decreased by 41.8%, while the TVL of custody vaults grew by 39%, increasing market share from 5.24% to 12.51%. The top 5 custodians manage 69% of the funds, and the top 10 account for 79.1%. The leading landscape has changed dramatically, with Sentora and Concrete not making the list a year ago, now ranking second and fourth, respectively, while Usual dropped from fourth to thirty-fourth.Morpho ranks first among protocols with a custody TVL of 46.2%, with the remaining 53.8% distributed across the other 17 protocols. Bitcoin collateral accounts for 54.1% of Morpho's top 25 stablecoin vaults (approximately $3.71 billion). In terms of address concentration, weighted by TVL, a single address holds an average of 47% of vault shares, with the top ten addresses collectively controlling 74%. About 33% of the custody funds require a multi-step redemption process, with a 7-day annualized yield median of 4.82%, which is 98 basis points higher than instant redemption vaults.The report also points out that traditional financial institutions such as Société Générale, Apollo, and JPMorgan have begun to deploy custody vault strategies.
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