The United Kingdom’s financial watchdog is asking for the public’s opinion on crypto regulations.

The Financial Conduct Authority (FCA) says it aims to develop a “safe, competitive, and sustainable” digital asset sector.

“Long-term confidence in crypto assets depends on clear regulation to promote market integrity and appropriate consumer protection.

We are seeking input into how the unique aspects of crypto assets should be considered in our future regulatory regime. We want an open discussion on the features of the future regime, with this latest Discussion Paper (DP) seeking views on how we regulate trading platforms, intermediaries, staking, lending and borrowing, and decentralized finance. We are also seeking feedback on the use of credit to purchase crypto assets.”

The regulator says a discussion paper and its proposals were developed after extensive consultation with crypto industry professionals, digital asset consumers and stakeholders in the traditional finance sector.

The FCA aims to restrict credit card usage when buying crypto, and earlier this year, the regulator moved to ban digital asset ads, managing to cut the advertisements down by 50%.

The financial watchdog says it is now making “good progress” with tech companies in regulating the banned advertisements but is still concerned about the prevalence of scams online.

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Shares in United Airlines (UAL -11.54%) were down as much as 11.4% today due to market volatility and investors digesting Delta Air Lines‘ (DAL -11.14%) earnings report and commentary the day before.

A challenging environment

United Airlines will report its first-quarter 2025 earnings on April 16, and if Delta’s earnings are any indication, United’s management is highly likely to report deteriorating conditions.

Both airlines had already alerted the market to the uncertainty created by tariffs negatively impacting bookings. For example, in early March, Delta Air Lines management told investors that its first-quarter revenue growth would come in closer to 4% compared to previous guidance for growth of 7% to 9%. Ultimately, Delta’s revenue growth came in at 3.3%.

Delta’s CEO Ed Bastian said “uncertainty around global trade” meant that growth had “stalled” with consumers and corporate travel negatively impacted. On a brighter note, he claimed that its international, premium, and loyalty-based revenue displayed “greater resilience.”

Delta declined to update its full-year guidance due to the uncertain market conditions.

What it means for United Airlines investors

Delta’s commentary on international and premium travel holding up provides some comfort, but the weakness in Delta’s main cabin revenue is highly likely also reflected in United’s outlook.

Image source: Getty Images.

However, long-term investors were given more comfort as Delta’s management said it would reduce capacity growth in the second half of the year in response to market conditions. That’s a positive sign as it indicates an industry acting in a disciplined manner when a slowdown occurs.

Investors’ primary near-term concern is stabilizing the trade conflict so the air travel industry can continue recovering from the lockdown periods.

Despite the recent decline in the share price of United Airlines (UAL 4.36%), the stock is still up 69% over the last year. However, there’s more room to run, and even the latest news of a slowdown in bookings shouldn’t shake long-term investors out of the stock.

Why United Airlines stock is volatile

First, it’s worth acknowledging that United Airlines, like most airline stocks, is volatile and often traded on momentum. This is due to the delicate relationship between its margins and demand/supply conditions.

Airlines tend to have relatively high fixed costs, so they have pricing power when booking demand exceeds capacity, and revenue expands, leading to margin expansion. Unfortunately, the reverse is true, and all it takes is a slight downturn in demand to lead to margin pressure.

The latter is why investors have sold off the stock recently, as United Airlines and premium peer Delta Air Lines have both spoken of a recent weakening in demand. This may relate to cautiousness among consumers and corporations about the economy following the imposition of tariffs by Donald Trump, compounded by a drop in government bookings.

Why it’s not too late to buy United Airlines stock

But sentiment can change as quickly as it fell away, as consumers and businesses adjust to the tariffs or the tariffs get removed or reduced. As for government bookings, United is already adjusting by preparing to replace government bookings with leisure bookings.

Image source: Getty Images.

Also, investors were worried about overcapacity last summer, and the airline industry’s response was to reduce unnecessary capacity. United CEO Scott Kirby believes a similar outcome will occur this year if the current weakness is extended — not least as airlines face pressures from airport costs and supply chain difficulties that are pressuring the profit of the low-cost carriers.

While there’s potential for more near-term demand weakening, United Airlines is in a good position to be a winner when it ends, which could be sooner than many expect, and it’s not too late to invest.

United States Steel (X 3.26%), which normally just goes by U.S. Steel, is an iconic name in the steel industry. However, the name recognition stems from the company’s past success, not its current fortunes. In fact, the company recently agreed to sell itself. That’s the key to deciding whether it’s worth buying, selling, or holding. Here’s what you need to know.

Buy United States Steel

United States Steel is probably best described as a special situations stock. It agreed to be bought by Japan’s Nippon Steel in 2023 for $55 per share. The stock is currently trading at around $38 per share, so there could material upside if it gets bought for anything close to Nippon Steel’s offer. That’s the reason to buy U.S. Steel today.

Image source: Getty Images.

The interesting thing is that there appear to be other suitors waiting in the wings. So even if Nippon Steel’s acquisition fails, a new buyout offer could be on the table. Some of the domestic steel industry’s largest companies are rumored to be interested, including Nucor and Cleveland-Cliffs. That offer could be for a higher price than $55 per share, or, given the troubles facing the Nippon Steel deal, it could be for a lower price. Still, it seems reasonable to expect the price to be higher than the current price.

In all, U.S. Steel is “in play,” and investors have solid reasons to believe that it’s going to be sold. If that type of investment interests you, it might be worth digging into the stock and the complex merger situation surrounding it.

Sell U.S. Steel

There’s one major problem here. The Nippon Steel acquisition has turned into a political fight and there’s no way to know whether the outcome will be positive or negative for U.S. Steel and its shareholders. It seems reasonable that the company will be sold, even if it requires breaking the company up into different parts. But steel is a vital domestic industry in a number of important ways, from employment to the use of steel in military equipment. There’s a good chance that a sale doesn’t, in fact, come to pass. If that’s the case, investors have to make sure they understand what they’re buying.

At its core, U.S. Steel is a primary steel company. That means it uses blast furnaces to produce steel from iron ore and metallurgical coal. This is a very expensive process and can lead to wide swings in revenue and earnings, given that steel is a commodity and the industry is cyclical. The swings in the industry, and U.S. Steel’s financial results, can lead to material swings in the stock price, too.

That said, U.S. Steel has been attempting to diversify its business by building a large electric arc mini-mill. This should help to even out its financial performance, given that this more modern technology tends to be more flexible than blast furnace technology. Still, you can buy a company like Nucor, which only uses electric arc mini-mills, if that’s the exposure you really want. In some ways, U.S. Steel is looking to be a Jack of all trades, but it might just end up being a master of none.

The backdrop here just isn’t all that compelling once you step beyond the merger story.

Hold United States Steel

Most investors will probably want to avoid U.S. Steel given the complex and uncertain back story. That said, if you bought it on the initial merger excitement and are now sitting on paper losses, you have a tough decision to make.

X data by YCharts

Given the company’s core business, you can find better steel stocks to own if you want steel exposure. Yet there could still be a sale even if Nippon Steel’s deal falls apart. If you believe that additional suitors are going to swoop in, it could be worth sticking it out with this high-profile stock today. But, again, this is a special situation stock and it is not going to be a good fit for most investors.

United States Steel is a tough stock to love

From an investor’s point of view, a standalone U.S. Steel isn’t very compelling. It’s no longer an industry leader, and while it’s working to upgrade its business model, the use of older blast furnace technology suggests it will remain a volatile stock. The big reason to be interested is the merger, but even there the story has gotten very complicated. Only the most aggressive investors should probably be looking at U.S. Steel today, given the risk that the Nippon Steel deal falls apart and the further uncertainty that outcome would create.

by Jonathan Jachim, Head of Kraken Global Policy and Government Relations

Just a few weeks ago I had the privilege of testifying before the U.S. House Financial Services Subcommittee on Digital Assets.

It is now difficult to exaggerate the magnitude of opportunities to complete the US market structure law and create a clear regulatory framework for crypto.

This is not merely about policy reform. It is about securing our markets and advancing innovations that can enhance our financial services.

A moment of bipartisan consensus

After years of legislative debate, we are at the moment when this 119th Congress can stimulate the nonpartisan consensus needed to advance US digital asset policy.

The long journey through industry engagement, education, hearings, legislation drafting and discussions demonstrates serious bipartisan cooperation.

Senators Ramis and Gilibrand laid the strong foundation for meaningful, bipartisan policy development in Congress with the introduction of legislation in early 2022, and last year the House passed 21.

We have seen strong agreements in Congress on enacting a centralized intermediary regulatory framework. This protects consumers while enabling blockchain-based innovation.

Why crypto market structure laws are important

The current patchwork and pre-regulation of state-level regulations, as well as enforcement, have curtailed both innovation and consumer protection. A cohesive market structure framework for centralized intermediaries paves the way for clearer and more consistent rules.

Our industry deserves a system that not only ensures consumer benefits, but also recognizes the unique dynamics of digital assets. Our bipartisan efforts must peak with laws that establish a durable framework. In doing so, we can ultimately eliminate the ambiguity of regulations that have long hindered advances in the crypto space.

It’s time to catch up with other parts of the world

Globally, nations are rapidly adapting to the digital revolution with well-balanced, advanced regulations. The EU, the UK and Canada, together with other major and emerging markets, are all evidence that effective regulation is achievable.

There is a clear and important opportunity for the US to accelerate and finalize this bipartisan law this year, with administrations, independent federal agencies and Congress. A unified regulatory framework not only harmonizes US regulations with international standards, but also allows US regulators to engage more effectively at the global stage.

We must work together to act now

The time for council action is now. Kraken is committed to defending a legislative framework that reconciles the need for freedom and regulatory clarity, essential to technological advancement. The future of US digital assets depends on the ability to work across party lines.

We are ready to work with Congress, regulators and industry partners to finalize our regulatory framework that promotes responsible innovation.