Finance

The 10-year U.S. Treasury yield touched 5% this week, marking a 19-year high, following a hawkish interest rate hike from the Federal Reserve under Chair Kevin Warsh. Shorter-term debt similarly experienced upward pressure, with the 2-year Treasury yield climbing to 4.741%, its highest close since mid-2024. These elevated yields continue to serve as a significant point of friction for the equity markets.

Cryptocurrencies demonstrated resilience as Bitcoin recovered above the $80,000 threshold and Ethereum pushed past $2,500. The digital asset market experienced a wave of buying momentum even as investors digested a hawkish stance from the central bank and the collapse of the CLARITY Act in the U.S. Senate. Market participants appeared to look past the political hurdles, shifting focus toward alternative regulatory paths.

Following the Senate's inability to pass the CLARITY Act, the Commodity Futures Trading Commission submitted a comprehensive regulatory package to the White House for review. The proposed framework aims to establish a federal oversight regime for crypto asset transactions and exchanges using existing statutory authority. The sudden regulatory shift came after legislative negotiations stalled over specific ethics provisions.