#Musk plans to establish an American Party If Musk really plans to establish a new political party called "The American Party", this will not only be a major event in American politics, but may also have the following multiple levels of profound impact on the cryptocurrency market: 🔍 1. Possible changes in policy and regulatory direction ✅ 1. Musk tends to support the free market of cryptocurrencies Musk has long publicly supported crypto assets such as Bitcoin and Dogecoin (DOGE). If he establishes a political party and promotes policies, he is likely to advocate: Reduce regulatory restrictions Support innovation and decentralized finance Oppose excessive intervention of the SEC and KYC monitoring This will make the entire US policy attitude tend to be "Web3-friendly" - a positive for the crypto market. 📈 2. Investor sentiment and capital flows ✅ 2. The market will see it as the rise of a "cryptocurrency-friendly force" As long as Musk talks about cryptocurrencies, the market will see short-term price fluctuations, or even surges (such as DOGE that year). If the "American Party" becomes the emerging third force, it will attract young, Internet-native voters with crypto assets, which will strengthen market confidence. Investors will expect the long-term policy environment to improve, crypto companies will be able to operate more safely, and promote capital repatriation. 🏦 3. Oppose or cooperate with existing regulatory agencies? ❗3. The policy direction of SEC and CFTC will be challenged Musk has repeatedly criticized the regulatory methods of SEC and Gary Gensler. If the US party advocates "simplified regulation, clear rules, and protection of innovation", it may lead to the following: Legislative lobbying begins to lean towards cryptocurrencies (especially stablecoins, ETFs, and DEXs) Delay or reverse certain anti-crypto policies (such as mandatory KYC or tax retrospective) This will reduce the current bearish regulatory pressure, which is a medium- and long-term positive. 🧠 4. Possible impact on specific currencies Currency Possible impact Reason DOGE 🚀 Extremely positive Musk is regarded as the representative of "people's cryptocurrency" and has extremely high support BTC/ETH 🟢 Stable positive If the legalization of encryption is promoted and the policy is friendly, mainstream currencies will be easier for institutions to adopt AI + Cryptocurrency 🟡 Potential positive If Musk advocates AI and decentralization (such as xAI + Web3), it may indirectly promote FET, GRT, AKT, etc. 🧩 5. Potential risks and variables If Musk's party is just a slogan and cannot actually affect the bill or the congressional ecology, the impact will be limited to short-term emotional speculation. If the policy is extreme or triggers a backlash from both parties, it may lead to tighter regulation (such as the Biden administration's countermeasures). ✅ Conclusion The impact of Musk's establishment of the "American Party" on the cryptocurrency market is summarized as follows: Time frame Impact direction Reason Short term 📈 Bullish speculation Like DOGE, Meme coin, Web3 topics will quickly respond to Musk's influence Medium term 🟢 Stable and positive If the political party gradually takes shape and gains influence, it can improve the overall regulatory environment expectations Long term 📊 Depends on political developments If it can really change the US crypto regulatory route, it will become an indicator of global policy trends