The Victory of the 'Too Big to Fail' Bill: Good News for the Crypto Market, or New Shackles?

Recently, the 'Too Big to Fail' bill (FIT21) has become a hot topic in the U.S., finally starting to seriously discuss crypto regulation! This time, the U.S. does not intend to apply a one-size-fits-all approach, but rather divides digital assets into two categories: well-functioning and decentralized assets like Bitcoin and Ethereum will be regulated by the CFTC; while projects with centralized control will still be under the SEC's watch. In simple terms, Bitcoin and Ethereum are basically safe for the time being.

For retail investors, the biggest benefits of this bill are:

✅ Clear legality and compliance, no need to fear exchanges shutting down

✅ Self-custodied wallets can be used with confidence, ensuring better security of funds

✅ In the future, it may be easier to purchase compliant crypto products, such as ETFs and compliant stablecoins

For exchanges, major platforms like Coinbase that focus on compliance are definitely winners. The regulatory path is clear, legal identity is established, and institutional funds are likely to flow back in.

More importantly, compliant stablecoins are given the green light; stablecoins like USDC, which are honest and have dollar reserves, will be more sought after in the future, greatly expanding opportunities for cross-border payments, DeFi applications, and corporate settlements.

However, don't think you can completely relax. Stricter KYC (real-name verification) and tax reporting will become the norm in the future, making it increasingly difficult for exchanges to run away or for platforms to collapse, and the clever trick of 'buying crypto without reporting taxes' will no longer work.

Which projects should be closely monitored in the future? The answer is:

• Compliant exchanges: Coinbase, Kraken, etc.

• U.S. Dollar stablecoins: USDC, future compliant newcomers

• Mainstream public chains: Bitcoin, Ethereum, Solana, Layer 2 networks

• Compliance-friendly DeFi: protocols like Aave and Uniswap that are ready to embrace regulation

In summary: this wave is a combination of tightening and releasing. The future may not allow for wild growth, but with greater compliance, healthier practices, and institutional entry, it may actually serve as a catalyst for the next bull market.

Spot trading reigns supreme, cherish the low points, and who knows, maybe the next time we dine out, we can even pay the bill with compliant stablecoins.