Citigroup: SEC New Regulations Will Be a Focus for the Crypto Market

In its latest market strategy program, Citigroup stated that the U.S. Senate failed to advance the CLARITY Act for formal review, but Bitcoin's rebound remained unaffected, indicating that funds are beginning to reduce their reliance on a single legislative milestone and are focusing on the advancement of regulatory rules. Citigroup believes that legislative obstacles will limit the CFTC's ability to obtain more comprehensive regulatory authority over the crypto market in the short term, but the SEC can still advance some rule-making based on its existing authority. This means that the compliance process for the crypto industry still has room for continuation, with future focus shifting to the SEC's actual execution pace regarding trading, tokenized assets, and market access rules. The macro environment remains a variable for Bitcoin's rebound. Citigroup's economic team has a baseline judgment that this round of interest rate hikes may be close to completion; however, the quantitative macro team warns that if AI investments continue to support growth and employment and wage pressures persist, interest rates may face further upward revision risks. Citigroup views Bitcoin's rise above the mid-term moving average as a signal of warming risk appetite and notes that its correlation with Nasdaq's performance is worth continued tracking.

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