Recently, expectations regarding the Federal Reserve leadership adjustments have sparked widespread market discussion. According to publicly available information, the new Federal Reserve Chair candidate will have a profound impact on policy orientation. Market analysts generally expect that the successor will face a core task—achieving more flexible monetary policy within the framework of presidential policies, which directly relates to the future liquidity environment.

Currently, the two most discussed candidates in the prediction market are Kevin Waugh and Kevin Hasset. From a background perspective, Waugh has a dual background in Wall Street and politics, with practical experience in innovative finance, including familiarity with emerging asset classes. If such a candidate takes office, it could lead to a more open policy attitude toward fintech and emerging asset classes.

It is worth noting that another important signal released regarding financial regulation is a clear stance on illegal and non-compliant activities—financial fraud cases are taken seriously, with no ambiguity. In the long run, this attitude actually purifies the industry ecosystem, allowing compliant institutions and projects to gain clearer policy expectations.

In this macro context, how should the crypto market respond? Market participants generally agree on two main strategies:

**The first is to position in underlying assets.** Bitcoin and Ethereum, as the most liquid assets, tend to be most sensitive during easing cycles. Institutional research reports have begun to discuss Bitcoin’s technical position, considering the current price range strategically significant. These two assets benefit most directly from marginal changes in monetary policy.

**The second is to proactively position in policy-benefiting sectors.** Stablecoins, as the infrastructure for on-chain payments and settlements, will see significant demand during periods of ample liquidity. Real-world asset tokenization (RWA) represents the integration of traditional finance with the on-chain world, and a policy-friendly environment will accelerate this process. Prediction markets and derivatives infrastructure are also generally viewed by analysts as mid-term growth sectors.

From an operational perspective, the key is to understand trends rather than chase noise. Policy cycles often take time to fully transmit to the market, and different assets respond at different paces. Professional investors typically build positions gradually in the early stages of trend formation, rather than rushing into the market after prices have been fully priced in.

In the current market environment, maintaining a clear understanding of macro trends, monitoring actual policy implementation progress, and observing the relative performance of different assets amid liquidity changes are fundamental to formulating investment strategies. Meanwhile, industry compliance and institutional participation are long-term trends; participants should favor projects and platforms aligned with this direction.