[Trump Again] Full Deployment of Pro-Digital Asset Figures... Speed Race Also Underway Domestically

'Regulation Advocate' Gensler Resigns Early as SEC Chairman
Coincides with Trump’s Inauguration
South Korea Also Begins Full-Scale Discussion on Second-Phase Legislation
Market Voices: "Corporate Account Review... Too Slow"
Bitcoin Market Faces Both Upward and Downward Pressures in the First Half
Long-Term Outlook Remains Upward... $110K Target Raised

On the 20th (local time), ahead of the launch of the second term of the Trump administration, the virtual asset market is filled with mixed feelings of expectation and anxiety. Bitcoin has remained relatively stable after reaching the $100,000 mark. Domestic virtual asset experts predict a long-term upward trend for Bitcoin, citing the strong commitment to policy implementation expected from the composition of the next Trump administration.

'Doge Dad' Musk to Paul Atkins, SEC Chairman

Looking at the lineup of the next Trump administration, pro-digital asset figures dominate. A representative example is appointing Tesla CEO Elon Musk as co-head of the Department of Government Efficiency (DOGE). Doge (DOGE) is also the name of the meme coin known as the 'Musk coin.' Among key financial figures, Scott Bessent as Treasury Secretary, Howard Lutnick as Commerce Secretary, Paul Atkins as Chairman of the U.S. Securities and Exchange Commission (SEC), and David Sacks as White House AI & Crypto czar are recognized for their high understanding of virtual assets. Hong Sung-wook, a researcher at NH Investment & Securities, noted, "Based on Trump’s actions after his election, it is clear that there is a strong will to implement digital asset-related pledges."

Reuters Yonhap News

The statement made by then-candidate Trump to dismiss SEC Chairman Gary Gensler, a virtual asset regulator, has also materialized. Former Chairman Gensler announced his early resignation in line with Trump’s inauguration. His original term was until 2026. The next SEC Chairman, Paul Atkins, is a former SEC commissioner.

Trump’s virtual asset policy can be summarized as the 'Bitcoin Strategic Reserve' policy, which involves purchasing up to 1 million Bitcoins, and the abolition of banking and financial service restrictions known as 'Operation Choke Point.' In this case, digital asset companies are likely to expand partnerships with banking services. Other key policies include the regulation of stablecoins and the prohibition of the Federal Reserve’s issuance of Central Bank Digital Currency (CBDC). A Presidential Advisory Committee on Digital Assets will also be established. The future market trend is expected to change depending on the regulatory guidance announced by the advisory committee. The market anticipates that the FIT 21 (Financial Innovation and Technology for the 21st Century) bill will clearly classify virtual assets, thereby reducing regulatory uncertainty.

Accelerated South Korean Virtual Asset Policy... Bitcoin Expected to Show Volatility in the First Half of the Year

Our government is also hastening legislation related to virtual assets in line with Trump’s policy moves. On the 15th, Kim So-young, Vice Chairman of the Financial Services Commission, held the 2nd Virtual Asset Committee meeting and announced, "We will officially begin legislative discussions on the second phase of the 'Virtual Asset User Protection Act.'" The second phase, which has the nature of an integrated law, will comprehensively include the stablecoin regulatory framework, a hot topic of recent debate. Stablecoins are coins pegged one-to-one in value with fiat currencies such as the dollar. The government also plans to gradually review the allowance of corporate accounts this year. Nevertheless, there are criticisms that the pace is slow. Jung Seok-moon, head of Presto Research Center, pointed out, "Allowing corporate accounts prioritizes non-profit organizations and does not accelerate the process, which is far from overcoming the competitiveness gap compared to overseas."

The Bitcoin market in the first half of the year is expected to show volatility amid both upward and downward pressures. Upward pressures include expectations for pro-virtual asset policies from the Trump administration and the possibility of economic stimulus in China. There is anticipation that pro-virtual asset policies will be announced within the first 100 days after Trump’s inauguration. Jung predicted that the SEC’s 'SAB 121' (cryptocurrency accounting policy) guideline might be abolished early. However, the strategic reserve plan for Bitcoin, which has significant impact, is expected to take a long time before actual implementation.

Downward pressures include economic indicators and the reduced possibility of interest rate cuts. Kim Yu-min, a researcher at Hanwha Investment & Securities, said, "Expectations may rise with Trump’s inauguration, but the pace of interest rate cuts may limit the upward trend." Nevertheless, he added, "I expect the next Bitcoin peak to be $110,000," and "Through legislation, the reliability of virtual assets will increase, and inflows of national and institutional funds may begin in earnest."