Here’s what happened in crypto today

Today in crypto, pro-crypto lawmaker Tom Emmer was elected House Republican minority whip as Democrats prepare to take control of Congress, hotter-than-expected US inflation raised concerns about a potential half-point Federal Reserve rate hike in December, and Coinbase, Kalshi and other trading firms backed the CFTC in a legal battle over perpetual futures tied to US stocks.

Crypto ally Tom Emmer elected House GOP minority whip

Pro-crypto US Representative Tom Emmer has been elected House Republican minority whip, securing the party’s second-highest leadership position as Democrats prepare to take control of Congress in January.

Emmer beat Texas Representative August Pfluger in a 103-76 secret ballot vote, according to Politico. He previously served as House Republican majority whip and will remain the party’s No. 2 leader, this time under incoming Minority Leader Jim Jordan.

As minority whip, Emmer will be responsible for rallying Republican votes, coordinating the party’s legislative strategy and helping maintain unity on key bills.

“Tom has been one of the strongest advocates for digital assets in Congress, and he has led the fight against a government-controlled CBDC and stood up for American innovators,” GOP Senator Cynthia Lummis said on X.

Hot US inflation raises odds of half-point Fed hike in December

Crypto industry experts warned on Tuesday that higher-than-expected US inflation could lead to a another Federal Reserve interest rate hike, making borrowing more expensive and potentially discouraging investment in cryptocurrencies.

The US Consumer Price Index (CPI) rose 0.4% month over month in October, above economists’ forecast of 0.3%, according to the Bureau of Labor Statistics - a slower increase than September’s 0.6% rise. Core inflation, which excludes food and energy prices, rose 0.3%, above the expected 0.2%.

Currently, the Federal Reserve holds its benchmark interest rate at 3.75% to 4.00%, after raising it by a quarter-point in September and leaving it unchanged in October.

The report came just a few hours after Federal Reserve Governor Christopher Waller said in London that another core inflation reading of 0.3% or higher could prompt the Fed to consider a larger interest rate hike in December.