Citi Says SEC Rulemaking Will Become the Next Focus for the Crypto Market

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Citigroup: SEC rulemaking will become the next MARKET_HOTSPOT for the crypto market

BlockBeats news,September 23, Citigroup said in its latest market strategy program that the U.S. Senate's failure to advance the CLARITY Act to formal consideration did not interrupt Bitcoin's rebound. After the bill's procedural vote was blocked, Bitcoin remained strong, indicating that capital has begun reducing its reliance on a single legislative milestone and is instead focusing on whether regulatory rules can continue moving forward.

Citigroup believes that the legislative setback will limit the CFTC's ability to obtain more comprehensive authority to regulate the crypto market in the short term, but the SEC can still advance certain rulemakings based on its existing authority. For the market, this means that the crypto industry's compliance process still has room to continue, with subsequent attention turning to the SEC's actual pace of implementing rules on trading, tokenized assets, and market access.

In addition, the macro environment remains a variable in Bitcoin's rebound. Citigroup's economics team holds as its base-case view that this rate-hike cycle may be close to being «one and done»; however, its quantitative macro team warned that if AI investment continues to support growth while employment and wage pressures persist, interest rates may face further upward revision risk. Citigroup regards Bitcoin's move above its medium-term moving average as a signal of recovering risk appetite and said that its correlation with the Nasdaq's performance merits continued tracking.

Original link https://m.theblockbeats.info/flash/368656

Key points

Citi stated that the U.S. Senate failed to advance the CLARITY Act to formal consideration.
Bitcoin remained strong after the bill’s procedural vote was blocked.
Citi believes that the SEC can still advance certain rulemaking based on its existing authority.
Subsequent focus includes the SEC’s pace of implementation for rules on trading, tokenized assets, and market access.
Citi’s economics team believes this rate-hike cycle may be close to being “one and done.”
Citi’s quantitative macro team warns that if AI investment continues to support growth while employment and wage pressures persist, rates may be revised higher further.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

After the bill's consideration was stalled, market attention shifted from the progress of a single piece of legislation to whether the SEC can continue to formulate and enforce the relevant rules.

Why it matters to readers

The pace of regulatory rulemaking may influence the market’s assessment of the crypto industry’s progress toward regulatory compliance.

Beginners can focus on the progress of SEC rules, interest-rate changes, and the correlation between Bitcoin and the Nasdaq.

Risks and unknowns

It remains unclear which specific rules the SEC will advance.
The timeline for rulemaking and actual enforcement remains unclear.
Whether interest rates will be revised upward further still depends on changes in AI investment, employment, and wage pressures.

Citi Says SEC Rulemaking Will Become the Next Focus for the Crypto Market

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