U.S. Treasury Signals Potential Increase in Bond Buybacks to Over 4 Billion USD Per Session

The U.S. Treasury Department has indicated it may expand its long-term bond buyback program to over 4 billion USD per session, coinciding with Bitcoin's (BTC) recovery to the 100 million KRW (about 72,400 USD) mark for the first time in about two months. This move is seen as potentially boosting liquidity in the bond market and stabilizing long-term interest rates, which has improved investor sentiment towards risk assets.

As of 9:09 a.m. (Korean time) on Friday, Bitcoin was trading at 100.9 million KRW (about 72,400 USD) on Bithumb, up 2.20% from the previous day. This marks Bitcoin's first return to the 100 million KRW level since June.

Internationally, CoinMarketCap reported Bitcoin's price at 73,322 USD, a 5.33% increase from the same time the previous day. The cryptocurrency has continued its upward trend, surpassing the 72,000 USD mark and reaching the 73,000 USD range.

The Treasury's decision to expand its bond buybacks is driving this bullish trend. On Wednesday, the department announced plans to at least double its long-term bond buybacks from the current 2 billion USD.

Treasury Secretary Scott Bensant further stoked investor interest on Thursday, suggesting that buyback sizes could exceed 4 billion USD per session.

Bensant explained that the move aims to signal the market and demonstrate that current bond yields may not accurately reflect fundamental economic conditions.

Market experts anticipate that the Treasury's expanded buybacks will inject liquidity into the bond market and reduce upward pressure on long-term bond yields. This, in turn, is expected to revitalize investor appetite for risk assets, including Bitcoin.

Mark Connors, Chief Investment Officer at Risk Dimensions, predicted that if the Treasury's actions successfully ease long-term bond yield pressures, Bitcoin could potentially surge to between 180,000 USD and 360,000 USD. However, he cautioned that short-term price movements may also hinge on developments surrounding the Clarity Act.

CFTC Prepared to Establish Crypto Regulations Even Without Clarity Act

The U.S. Commodity Futures Trading Commission (CFTC) has announced its readiness to create its own regulatory framework for digital assets if the Digital Asset Market Structure Act (Clarity Act) fails to pass.

On Thursday, CoinDesk reported that CFTC Chairman Mike Seliga stated during an Innovation Advisory Committee meeting that the commission would pursue alternative regulatory measures if the Senate fails to pass the bill.

Seliga revealed that he has already directed staff to prioritize the development of this contingency plan.

He added that if Democrats delay the Clarity Act's progress, the CFTC would leverage its existing authority to establish a regulatory framework for digital assets.

Kalshi Seeks Approval for Stock Index-Linked Perpetual Futures

Prediction market platform Kalshi is pushing to launch perpetual futures products tied to U.S. stock indices.

<em>CNBC </em>reported on Thursday that Kalshi submitted documentation to the CFTC on Tuesday, seeking approval for perpetual futures products tracking 500 large-cap U.S. stocks.

Unlike traditional futures, perpetual futures are derivatives without expiration dates, allowing investors to speculate on price movements without holding the underlying assets.

Kalshi has also applied for copper-linked perpetual futures. This move follows the company's recent expansion into the derivatives market, including cryptocurrency perpetual futures approved in late May and plans for precious metals-linked products announced last month.

X Explores Stablecoin Payments for Content Creators

Social media platform X (formerly Twitter) is considering using stablecoins to compensate content creators.

CoinDesk reported on Thursday that X is discussing the potential use of Circle's USDC stablecoin to reward influential users. Specific implementation details and timelines have not been disclosed.

X is gradually phasing out its existing revenue-sharing program in favor of an original content reward system. This new approach aims to compensate creators for content that demonstrates originality, expertise, journalistic value, and creativity.

U.S. Treasury Signals Potential Increase in Bond Buybacks to Over 4 Billion USD Per Sessio …

Is Bitcoin Set to Soar? U.S. Treasury's Buyback Strategy Sparks Investor Interest