DeFi Bull Market Strategy: SEC Releases Good News, But Don't Get Overly Excited
This month, the SEC's roundtable meeting released six major pieces of "good news":
1. Financial Independence: DeFi is described as a continuation of the American spirit of freedom, no longer a thorn in the side of regulators.
2. Staking/mining/validators are not considered securities.
3. On-chain products can obtain an "innovation exemption" without cumbersome registration.
4. Self-custody rights are recognized as fundamental rights.
5. Public support for Trump's crypto-friendly policies.
6. Affirmation of DeFi's stable operation after the FTX collapse.
Sounds sweet, right? But what I want to say is not encouragement or denial, but a reminder:
This is not a victory for freedom, but a reconstruction of the narrative.
The SEC is not giving up regulation but is redefining who can play and how. The projects that survive in the future will not be the most decentralized but those that can coexist with compliance and decentralization.
Saying that staking is not a security is correct. But are you participating in base layer validation? Or are you in a CEX interface wrapped staking, re-staking, and redistributing the "high-yield staking treasure"?
Regulation protects the base layer, not the illusion of a 35% annualized return in your wallet.
Saying there are "innovation exemptions", don’t think everyone gets a share. Regulatory benefits will only flow to:
Those with identity, who can engage with policies;
Projects that can disclose, can be audited, and can be regulated.
Anonymous teams, Fork projects, and speculative second tokens will only be marginalized in institutional reshuffling.
You are not investing in narratives but in "whether regulation can tolerate this structure to survive".
So, stop deceiving yourself. Those who can truly traverse the cycles are not the first wave to hear the good news but the second wave who understand the tone of the policy and tread carefully on regulatory red lines.
We ran ahead of the narrative, only to end up in the harvester.
What remains are the seasoned investors bearing scars 🌱
Those who can still move forward are the survivors learning to be human on-chain and learning to walk in a bear market 🌐🧠