TechFlow news, on December 25, CITIC Securities' latest research report indicated that cryptocurrencies have become a core asset of the "Trump trade," with the S&P Cryptocurrency Index (BDM) rising 49.1% cumulatively during the relevant trading period. If Trump, upon assuming the U.S. presidency in 2025, plans to loosen regulations on the cryptocurrency industry, his primary task would be clarifying regulatory authority and responsibilities for the sector.
The report noted that the U.S. federal government currently holds nearly $20 billion in cryptocurrency assets, and states such as Pennsylvania and Texas have initiated legislation for strategic Bitcoin reserves. Trump has nominated crypto supporter Paul Atkins as a candidate for SEC Chair and plans to appoint David O. Sacks as White House AI and cryptocurrency advisor. Against this backdrop, the Senate-stalled Financial Innovation and Technology for the 21st Century Act could gain new momentum. With expectations of a more lenient U.S. regulatory environment, the U.S. equities cryptocurrency supply chain is expected to receive positive support.
The report recommends focusing on three areas: 1) increased trading activity in the U.S. cryptocurrency sector may benefit U.S.-listed cryptocurrency exchanges; 2) favorable policy developments could boost demand for mining equipment; 3) growth in the U.S. cryptocurrency industry may benefit the U.S. utilities sector. It also warns of potential risks including stricter-than-expected regulation, Federal Reserve tightening, cybersecurity threats, and escalating geopolitical conflicts.
