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SEC Launches 'Crypto Project': Reconstructing Web3 Regulation, Freedom Recedes, Order Arrives
The SEC's 'Crypto Project' will fundamentally reshape the balance between innovation freedom and consumer protection in the crypto market, with impacts evident in the following four areas:
1. Strengthening Consumer Protection (The Regulatory 'Tightening')
Stablecoin 'De-risking'
The new framework will require stablecoin issuers (e.g., USDT, USDC) to have 100% reserve transparency and prohibit high-risk investments (e.g., commercial paper).
Users will avoid tragedies like the Terra crash (which evaporated $40 billion), but the yields on stablecoins may approach zero.
Exchange 'Bank-level Regulation'
Platforms like Coinbase and Kraken must isolate user assets, conduct regular audits, and establish bankruptcy protection mechanisms.
Retail fund security will improve, but compliance costs will be passed on as higher trading fees (expected to rise by 10-20%).
Token Issuance 'IPO-ization'
Most tokens may be defined as securities, requiring project teams to disclose team backgrounds, fund usage, and risk lists - raising the bar for issuing coins to be on par with traditional IPOs.
Cost: DeFi protocols that cannot meet KYC (user real-name authentication) may be forced to exit the U.S. market.
2. Squeeze and Guide on Technological Innovation (The 'Double-edged Sword' of Rules)
Innovation Shift:
Privacy protocols and anti-censorship technology R&D will shift to regions with relaxed regulations (like Switzerland and Singapore), while the U.S. will focus on regulation-friendly innovations (such as CBDC cross-border payments and tokenized national debt).
Resource Tilt:
Traditional financial giants (BlackRock, JPMorgan) may enter the market with compliance advantages, potentially squeezing out small and medium-sized crypto startups.
3. The 'Domino Effect' of Global Regulatory Coordination
The SEC framework may become a global regulatory template, triggering a chain reaction:
Offshore exchanges under pressure
Platforms like Binance must either separate international operations or accept equivalent audits (such as proof of reserves) to serve U.S. users.
End of 'Regulatory Arbitrage'
Project teams cannot evade regulation by relocating to Puerto Rico or the Cayman Islands - the rules in major markets (U.S., Europe, Asia) are rapidly converging.
Mandatory On-chain Identity
In the future, U.S. users may need traceable electronic identities (like IRS tax interfaces) to use DeFi protocols, fundamentally changing crypto anonymity.
4. The Nature of Balance: Trading market boundaries for rule certainty.
Short-term Growing Pains:
Speculative projects (Meme coins, uncollateralized lending) will shrink, and the total market cap of cryptocurrencies could decrease by 15-30%.
Long-term Reconstruction:
Surviving companies will gain institutional funding (e.g., daily inflow of Bitcoin spot ETFs may exceed $500 million), driving blockchain technology into real economic scenarios like energy trading and medical data.
In summary, this is not the end, but a brutal 'coming of age'.
The SEC's framework essentially declares: The crypto industry must move from 'technological idealism' to 'financial realism'.
For Ordinary Users: Increased security, but must accept transaction transparency and mediocre returns.
For Builders: Abandon the fantasy of 'confronting regulation' and seek new breakthroughs on the compliance canvas (e.g., CBDC + DeFi hybrid architecture).
For the Market: After the growing pains, a more sustainable trillion-dollar market cap may emerge - but this will be a new crypto era led by institutions and friendly to regulation.
Just as the 1930s (Securities Act) reshaped Wall Street, the 2020s 'Project Crypto' could become a turning point in the history of crypto finance: freedom recedes, order arrives. #cec #cryptouniverseofficial