$ETH Under the leadership of the new Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, the SEC has officially given the green light for liquidity deposit activities, explicitly stating that some deposit activities do not constitute the issuance of securities. This shift in policy marks a break from the strict enforcement model followed by former SEC Chair Gary Gensler, thereby providing a clear legal space for innovation. This announcement has triggered a surge in market activity.
Over the past few years, the U.S. cryptocurrency industry has suffered from regulatory ambiguity. Liquidity deposit is highly sensitive due to the massive capital involved. The value of liquidity deposits on the Ethereum network has reached $51 billion, representing approximately 76% of the global liquidity deposit market. Regulatory uncertainty previously hindered institutional investors, but now, regulatory clarity is sending positive signals. Numerous well-known institutions, such as VanEck and Bitwise, have swiftly applied for exchange-traded funds designated for liquidity deposits on Ethereum and Solana, with official approval expected soon.
Paul Atkins confirmed that this announcement clarifies the jurisdictional limits of the U.S. Securities and Exchange Commission (SEC) regarding other cryptocurrency innovations, indicating a more flexible environment for the decentralized finance (DeFi) ecosystem. The key advantage of liquidity deposits lies in the high asset liquidity and capital efficiency compared to traditional deposit models, attracting more traditional financial institutions to participate. For banks, insurance companies, and pension funds, this positive news can effectively alleviate their previous concerns about regulatory risks.
Although the current statement is merely a policy statement issued by the U.S. Securities and Exchange Commission (SEC) and does not constitute a legally binding regulation, given the political and market environment, there is no doubt that formal rules will be drafted in the future. This also means that the U.S. market could once again become a center for global innovation in the cryptocurrency space, attracting significant capital flows.
Looking ahead, as blockchain networks like Ethereum continue to update and regulatory clarity emerges, the liquidity deposit market is expected to witness significant growth. This regulatory shift also provides an important foundation for the healthy development of the cryptocurrency market as a whole. Investors will directly benefit from regulatory clarity, and this sector will unleash a new wave of more dynamic technological innovation.
