Federal Reserve Governor Bowman clearly stated in a speech that supporting the rate cut in December as the "final step" of monetary policy adjustment requires a cautious approach in future decisions. This indicates that, against the backdrop of rising inflationary pressures, the Federal Reserve may have completed several rounds of rate cuts and will adopt a more cautious policy adjustment approach to avoid overheating the market.
Specifically, Bowman pointed out: "We should also avoid prematurely judging the future policies of the new government, and we should wait for clearer messages before seeking to understand the impact on economic activity, the labor market, and inflation." This statement highlights the flexibility of the Federal Reserve's decision-making, especially in the face of economic uncertainty, where the central bank tends to adopt a wait-and-see approach to ensure that the timing and intensity of policy adjustments are appropriate.
Additionally, Bowman mentioned, "This year will see a turnover in the leadership of banking institutions, and I expect this to translate into a shift in priorities and methods." This suggests that the Federal Reserve will further optimize the regulatory framework, especially in the area of financial regulation. For the market, this means there will not be overly aggressive policy changes in the short term, but medium- to long-term policy adjustments will bring about a more favorable financial environment.
Meanwhile, former Risk Premium Investments partner Andrew Baehr also revealed that the market generally expects the U.S. Securities and Exchange Commission (SEC) to relax its regulation of cryptocurrencies in 2025. In recent years, the SEC's regulatory policies on cryptocurrencies have been under scrutiny, especially as the token XRP became the focal point of SEC lawsuits. However, with Trump regaining power, Baehr noted that XRP's price has begun to rise significantly, and he expects this trend to intensify in the future.
In 2025, the market expects the SEC to relax its regulation of crypto projects, particularly those decentralized projects driven by stablecoins, which will find it easier to gain regulatory approval. Ethereum (ETH) has the potential to become the main blockchain platform for these decentralized projects, and this change will greatly promote the healthy development of the crypto market.
Not only is the regulatory policy in the U.S. changing, but Canada's cryptocurrency market is also undergoing significant political transformations. Canadian Prime Minister candidate Pierre Poilievre has clearly expressed support for cryptocurrencies and DeFi (decentralized finance) during his campaign and advocates for favorable crypto regulations to promote the development of digital assets. Poilievre opposes the implementation of central bank digital currencies (CBDCs), believing that this would intensify government control over the market and reduce economic independence. Instead, he supports combating inflation through the use of digital assets like Bitcoin to ensure financial freedom for the public.
Poilievre's remarks convey a clear signal: if elected, the Prime Minister position could provide a more lenient regulatory environment for Canada's cryptocurrency industry. This policy inclination will attract more crypto companies to enter the Canadian market, thus promoting the development of the global crypto industry. Poilievre's campaign agenda shows a more open and inclusive outlook for the crypto market, which is a positive signal for investors and entrepreneurs.
Ripple President Monica Long stated in a recent interview that XRP is very likely to become the next spot ETF in cryptocurrency after Bitcoin (BTC) and Ethereum (ETH). She pointed out that with the improvement of the U.S. cryptocurrency legislative environment, more crypto spot ETFs are expected to be approved in 2025. This prediction has clearly had a positive impact on the XRP market.
XRP, as a highly controversial digital asset, has faced a significant amount of legal and regulatory challenges over the past few years. However, with the gradual conclusion of the SEC lawsuit, XRP's market prospects have become more optimistic. Monica Long's remarks suggest that XRP could become a favorite in the crypto industry, and its potential ETF status will give it greater visibility and acceptance in traditional investment markets.
