🧵 Explanation of an important news for the crypto market 🔥
The SEC Chair's statement that it is the right time to introduce crypto as regulated options within 401(k) retirement plans
Let's talk about a market worth 12 trillion dollars.
As a calculated shift in the philosophy of American financial regulation 🔥
A large liquidity influx coming to crypto 🔥
And I will specify the currencies that I see below 👇
🔹 First: What has changed from before?
1/ The real shift is not in allowing crypto, but in moving the discussion from prohibition to management.
2/ Conditional allowance means that the regulator no longer sees crypto as a systemic risk in itself, but rather as a high-risk asset that needs a strict governance framework.
🔹 Second: Market size: 12.5 trillion dollars
The 401(k) market represents long-term capital, inherently conservative.
So introducing crypto here:
▫️ It raises the institutional legitimacy of digital assets ✅
▫️ But at the same time, it puts it under a temporal stability test
That is, crypto is transitioning from the logic of 'rapid growth' to the logic of 'long-term sustainability'.
🔹 Third: The hidden message to the regulator 😉
The SEC does not say 'invest', but says:
✔️ If crypto is offered, it should be through professional managers
✔️ With clear legal accountability (Fiduciary Duty)
✔️ And within limited options, not as a default option
This reflects the priority of protecting the system before expanding the return. 🔥
🔹 Fourth: Why is the political debate escalating?
The objection of figures like Elizabeth Warren is not a rejection of crypto per se, but a concern about:
▪️ Loading retirement savings with fluctuations that cannot be temporally compensated
▪️ Transfer market risks from the individual investor to the social system
⚠️ Here the discussion becomes socio-economic, not just investment-related.
🔹 The analytical summary
What we are witnessing is not an adoption of crypto, but a reshaping of the boundaries of acceptable risk within the financial system.
Crypto is being tested today not on its ability to generate returns, but on its ability to adhere to responsible capital rules.
And I see that the biggest beneficiaries of this news are the leading currencies.
I am happy with such news and hopefully I stood in the transfer
And try to focus on leading currencies and have them constitute 60% of your investment portfolio and 40% in non-leading currencies
Because a drop of -40% is compensated by a future rise of 60% in the leading assets.
And since you reached here, don't forget to retweet and write a comment ❤️👇