小猪天上飞-Piglet
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On December 17, executives from the cryptocurrency industry met with Senator Tim Scott to discuss the market structure bill. Trump even stated that the existing financial system is outdated and will be replaced by a cryptocurrency framework. The Treasury Secretary plans to dismantle the regulatory barriers for cryptocurrencies to promote on-chain financial systems. This series of news has led to a collective excitement in the crypto community, with market sentiment quickly shifting from panic to optimism. Executives from Coinbase, Ripple, and Binance participated.
However, thinking calmly, is this really reliable? Trump comes from a business background and his words are often fanciful. The so-called reconstruction of the financial system by cryptocurrencies seems more like a political slogan aimed at attracting crypto voters. If we really want to move the entire financial system on-chain, will traditional banks and Wall Street interest groups agree? Will the Federal Reserve give up the dollar's hegemony? These vested interests will not easily step aside.
To take a step back, even if the bill is passed, it would only relax regulations for the cryptocurrency industry, making compliance higher, but it is a long way from replacing traditional finance. Don’t forget that in 2021, El Salvador made BTC legal tender. What was the result? The economy did not take off because of this; instead, public discontent arose due to price fluctuations.
However, on the other hand, these policy signals do indeed have a positive effect on market sentiment. Even if it's just wishful thinking, it can lead to a short-term rally. After all, the crypto market relies on expectations and narratives for speculation. The real problem is whether the market will face a crash when the good news is realized or when the bill struggles to pass. Those who speculate on policy expectations should remember one thing: when good news is fully realized, it often turns into bad news.
However, thinking calmly, is this really reliable? Trump comes from a business background and his words are often fanciful. The so-called reconstruction of the financial system by cryptocurrencies seems more like a political slogan aimed at attracting crypto voters. If we really want to move the entire financial system on-chain, will traditional banks and Wall Street interest groups agree? Will the Federal Reserve give up the dollar's hegemony? These vested interests will not easily step aside.
To take a step back, even if the bill is passed, it would only relax regulations for the cryptocurrency industry, making compliance higher, but it is a long way from replacing traditional finance. Don’t forget that in 2021, El Salvador made BTC legal tender. What was the result? The economy did not take off because of this; instead, public discontent arose due to price fluctuations.
However, on the other hand, these policy signals do indeed have a positive effect on market sentiment. Even if it's just wishful thinking, it can lead to a short-term rally. After all, the crypto market relies on expectations and narratives for speculation. The real problem is whether the market will face a crash when the good news is realized or when the bill struggles to pass. Those who speculate on policy expectations should remember one thing: when good news is fully realized, it often turns into bad news.
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