In 20 days, 4 statements, 3 bills, and 2 executive orders were released. Which areas of encryption are favoured by US policy?

Written by: BUBBLE

"The White House is preparing to issue an executive order to penalize banks that discriminate against cryptocurrency companies." This news has been making waves in social media lately, and those who have been in the cryptocurrency industry for more than two years might find themselves rubbing their eyes in disbelief, exclaiming, "It feels like a different era."

But only a little over a year has passed, and in March 2023, the "Choke Point Action 2.0" was fully implemented. During the Biden administration, a joint statement was issued through agencies such as the Federal Reserve, FDIC, and OCC, categorizing cryptocurrency businesses as "high risk" and requiring banks to strictly assess the risk exposure of crypto customers. Regulatory agencies exerted informal pressure to force crypto-friendly banks like Signature Bank and SilverGate Bank to shut down their core businesses and restrict new customer access. Builders of payment and trading platforms should feel particularly affected at this time, as crypto public companies like Coinbase were caught in the middle, having to invest hundreds of millions of dollars to establish independent banking relationships, while small and medium-sized crypto startups registered large numbers offshore due to their inability to meet KYC/AML requirements.

In the past month, the policy direction has swiftly reshaped almost all types of crypto assets, including stablecoins, DeFi, ETFs, LST, and so on. The accelerated entry of traditional financial institutions and the prevalence of crypto stocks have created a strong sense of disconnection. However, aside from signaling the starting line for "institutions," what opportunities can we find within these regulations?

Four statements, three bills, two executive orders

Before interpreting, let's first take a complete look back at some of the measures introduced by the U.S. government and regulatory agencies from July to August. They appeared in a dense and fragmented manner, but together they piece together the current regulatory blueprint for cryptocurrency in the United States.

On July 18, Trump signed the GENIUS Act

The bill establishes the first federal-level regulatory framework for stablecoins in the United States, which specifically includes:

Require payment-type stablecoins to be 100% backed by liquid assets such as US dollars or short-term government bonds, with monthly disclosures.

Stablecoin issuers must obtain a "Federal Qualified Issuer" or "State Qualified Issuer" license.

The bill prohibits issuers from paying interest to holders and requires prioritization of stablecoin holders in the event of bankruptcy.

The bill clearly defines that payment stablecoins are not securities or commodities.

On July 17, the House of Representatives passed the CLARITY Act.

The bill aims to establish the market structure for crypto assets, including the following details:

Clearly assign jurisdiction to the CFTC (regulating digital commodities) and the SEC (regulating restricted digital assets).

Allow projects to temporarily register to transition from securities to digital commodities after the network matures, providing a safe harbor for decentralized participants such as developers and validators. The CLARITY Act creates an exemption under Section 4(a)(8) of the Securities Act for the issuance of digital commodities, with a financing cap of $50 million every 12 months, and uses "mature blockchain systems" testing to determine whether the network is free from the control of any individual or team.

On July 17, the House passed the Anti-CBDC Surveillance State Act.

The House of Representatives passed a bill that prohibits the Federal Reserve from issuing central bank digital currency (CBDC) to the public and prohibits federal agencies from researching and developing CBDC. Congressman Tom Emmer explained that CBDC could become a "tool for government surveillance," and the bill enshrines the president's executive order banning the development of CBDC into law to protect citizens' privacy and freedom.

On July 29, the SEC approved the "physical redemption" of Bitcoin and Ethereum spot ETFs.

The committee approved cryptocurrency trading products such as Bitcoin and Ethereum to allow for the creation and redemption of shares in physical cryptocurrency assets rather than cash, which means that Bitcoin and Ethereum will receive treatment similar to commodities like gold.

On July 30, the White House released a 166-page "Report of the Digital Asset Market Working Group" (PWG Report).

The White House Digital Asset Working Group released a 166-page report, proposing a comprehensive blueprint for cryptocurrency policy, including:

Emphasize the establishment of a digital asset classification system to distinguish between security tokens, commodity tokens, and commercial/consumer tokens.

It is required that Congress grant the CFTC the authority to regulate the spot market for non-securities digital assets based on the CLARITY Act and embrace DeFi technology.

It is recommended that the SEC/CFTC quickly allow the issuance and trading of crypto assets through exemptions, safe harbors, and regulatory sandboxes.

It is recommended to restart the banking sector's crypto innovation, allow banks to custody stablecoins, and clarify the process for obtaining a Federal Reserve account.

SEC "Project Crypto" plan on July 31 and August 1, CFTC "Crypto Sprint" plan

In a speech at the U.S. Securities and Exchange Commission, Atkins launched the "Project Crypto" initiative, aimed at modernizing securities rules to bring the U.S. capital markets on-chain. The SEC will establish clear rules for the issuance, custody, and trading of crypto assets, and will use interpretations and exemptions to ensure that traditional rules do not hinder innovation until the rules are refined. The specific content includes:

Guide the issuance of crypto assets to return to the United States and establish clear standards that distinguish between categories such as digital commodities, stablecoins, and collectibles.

Revise the custody regulations to emphasize citizens' right to self-custody of digital wallets and allow registered intermediaries to provide crypto custody services.

Promote "super applications" that enable brokerage firms to trade both securities and non-securities crypto assets on a single platform while providing services such as staking and lending.

The updated rules create space for decentralized finance (DeFi) and on-chain software systems, clearly distinguishing between pure software publishers and intermediary services, while exploring innovative exemptions that allow new business models to quickly enter the market under "light compliance."

On August 1, the U.S. Commodity Futures Trading Commission (CFTC) officially launched the "Crypto Sprint" regulatory initiative in collaboration with Project Crypto. Four days later, on August 5, it further proposed to include spot crypto assets in compliance trading at CFTC-registered Derivatives Clearing Organizations (DCM), which means that platforms including Coinbase or on-chain derivatives protocols can obtain compliance operating licenses through DCM registration.

On August 5, the SEC's Financial Department statement regarding Liquid Staking activities.

The SEC's finance department issued a statement analyzing the liquidity staking scenario and believes that liquidity staking activities themselves do not involve securities trading, and that liquidity staking receipts (Staking Receipt Tokens) are not securities. Their value only represents ownership of the staked crypto assets and is not based on the entrepreneurial or managerial efforts of third parties. The statement clarifies that liquidity staking will not constitute an investment contract, providing clearer compliance space for DeFi staking services.

Draft of the Executive Order Against "Suffocation Action 2.0" on August 5

The decree aims to address discrimination against cryptocurrency companies and conservative individuals, threatening to impose fines on banks that sever customer relationships for political reasons, and to take consent orders or other disciplinary measures. Reportedly, the executive order also directs regulators to investigate whether any financial institutions have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws.

On August 7, Trump signed an executive order regarding 401(k) pension investments.

It is proposed to allow 401(k) pension funds to invest in alternative assets such as private equity, real estate, and cryptocurrencies. This move will bring a significant breakthrough for the industry seeking to tap into the approximately $12.5 trillion retirement market.

In the era of the Super App where everything is on the blockchain, which crypto sectors can benefit from policy dividends?

The United States has now established a compliance framework for the cryptocurrency sector. The Trump administration established the foundational status of "stablecoins" through the Stablecoin Act and the Anti-Central Bank Digital Currency Act, which binds them to U.S. Treasury bonds and links them to global liquidity, thereby allowing stablecoins to be extended into various cryptocurrency fields without concern. The CLARITY Act genius bill defines the jurisdiction of the SEC and CFTC. From July 29 to August 5, within just one week, four statements were released that are more related to on-chain activities, from the "physical redemption" of BTC and ETH ETFs to information on liquid staking receipts, all aimed at connecting the channels of "old money" to the blockchain before using "DeFi yields" to expand more financial systems on-chain. The two executive orders issued in the past few days are a concrete way to inject "bank" and "pension" money into the cryptocurrency sector. This series of moves has brought about the first true "policy bull market" in the history of cryptocurrency.

Regarding Atkins's launch of Project Crypto, he mentioned a key concept "Super-App", which refers to the "horizontal integration" of product services. In his vision, a single application in the future will be able to provide customers with comprehensive financial services. Atkins stated: "Broker-dealers with alternative trading systems should be able to provide trading of non-securities crypto assets, crypto asset securities, and traditional securities, as well as services such as crypto asset staking and lending, without needing to obtain licenses from over 50 states or multiple federal licenses."

When discussing the hottest candidates for this year's Super App, traditional brokerage Robinhood and the earliest "compliant" trading platform Coinbase are undoubtedly at the forefront. This year, while Robinhood acquired Bitstamp, launched tokenized equity, and partnered with Aave to integrate on-chain transactions with in-platform trading, Coinbase further integrated its Base chain ecosystem with the Coinbase exchange and upgraded the Base wallet to combine social and off-chain application layer services into a unified app. However, it is the RWA across various fields under the backdrop of super applications that is truly experiencing an explosion.

After policies encourage traditional assets to go on-chain, Ethereum bonds, tokenized stocks, and short-term government bonds will gradually enter a compliance path. According to data from RWA.xyz, the global RWA market has grown from approximately $5 billion in 2022 to around $24 billion by June 2025. However, rather than calling this RWA, it is better to refer to them as Fintech, since the goal is to make financial services more efficient from an institutional and technological perspective. From the emergence of Real Estate Investment Trusts (REITs) in the 1960s, E-gold, to the subsequent appearance of ETFs, they have only become RWA after countless experiments with decentralized ledgers, colored BTC, algorithmic stablecoins, and both failures and successes.

Currently, after being recognized by the policy system, it has become the most reliable endorsement, and its market will be enormous. The Boston Consulting Group believes that by 2030, 10% of the global GDP (approximately $16 trillion) can be tokenized, while Standard Chartered estimates that by 2034, tokenized assets will reach $30 trillion. Tokenization opens up exciting new opportunities for institutional companies by reducing costs, streamlining underwriting, and improving capital liquidity. It also helps enhance returns for investors willing to take on more risk.

The essence of stablecoins, on-chain national bonds

When discussing RWAs in cryptocurrency, dollar assets, particularly dollar currency and U.S. Treasury bonds, always take center stage. This is the result of nearly 80 years of economic history, with the Bretton Woods system developed in 1944 making the dollar a pillar of global finance. Central banks around the world hold most of their reserves in dollar-denominated assets, with approximately 58% of global official foreign exchange reserves held in dollars, the majority of which is invested in U.S. Treasury bonds. The U.S. Treasury bond market is the largest bond market in the world, with about $28.8 trillion in outstanding debt and unparalleled liquidity. Foreign governments and investors alone hold about $9 trillion of this debt.

Historically, there have been almost no assets that match the depth, stability, and credit quality of U.S. Treasury securities. High-quality government bonds are the cornerstone of institutional portfolios, used for the safe storage of capital and as collateral for other investments. The crypto world leverages these same fundamentals, and the relationship between the two has deepened more than ever since stablecoins became the largest "on-ramps" for crypto.

Although on one hand, cryptocurrencies have not fulfilled Satoshi Nakamoto's expectation of "creating an alternative to the dollar system," they have instead become a more effective infrastructure for a financial system based on the dollar. This has ironically become a necessary condition for the U.S. government to "fully accept its existence," and in fact, the U.S. government may need it more than ever.

With the recent joining of countries such as Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia, the total GDP of the BRICS group reached $29.8 trillion in 2024, surpassing the United States' GDP of $29.2 trillion, making the U.S. no longer the world's largest economic group by GDP. Over the past twenty years, the growth rate of BRICS economies has significantly outpaced that of the G7.

As of May 15, 2025, data from the U.S. Treasury shows that Tether's holdings of U.S. Treasury securities exceed those of South Korea, source: Messari.

Stablecoins that are strongly correlated have a unique position in the global financial landscape. They are the most liquid, efficient, and user-friendly wrappers for short-term U.S. Treasury securities, effectively addressing two challenges related to de-dollarization: maintaining the dominance of the dollar in global transactions while ensuring sustained demand for U.S. Treasury securities.

As of December 31, 2024, data on US dollar holders shows that stablecoin holders have reached 15% to 30% of the total development of traditional US dollars over several centuries during a development period of 5 years, source: Ark Investment.

Stablecoins like USDC and USDT provide traders with a stable trading currency and are backed by the same bank deposits and short-term government bonds relied upon by traditional institutions. However, the income from these government bonds backing the stablecoins is not owned by the holders, but there are more on-chain financial products that incorporate the concept of U.S. Treasury bonds. Currently, there are two main methods to construct tokenized treasury bonds on-chain: yield-generating mechanisms and basis-changing mechanisms.

For example, yield tokens like Ondo's USDY and Circle's USYC accumulate base returns by enhancing asset pricing through various mechanisms. In this model, due to the accumulated yield, the price of USDY will be higher six months from now than it is today. Conversely, variable base tokens like BlackRock's BUIDL and Franklin Templeton's BENJI, or Ondo's OUSG, maintain dollar parity by distributing yields through newly issued tokens at predefined intervals.

Whether it is "yield-bearing stablecoins" or "tokenized U.S. Treasuries," similar to the adoption of fund portfolios in TradeFi, on-chain financial products utilize on-chain U.S. Treasuries as a component of stable income. This has become an alternative to high-risk DeFi, allowing crypto investors to achieve a stable annual yield of 4-5% with minimal risk.

The easiest field to make money in is on-chain credit.

The traditional lending industry is one of the core profit sectors of the financial system. According to research by magistral consulting, the global credit market is expected to reach a size of $11.3 trillion by 2024, and it is anticipated to reach $12.2 trillion by 2025. In contrast, the entire crypto lending market is still less than $30 billion, but the yields generally range from 9% to 10%, which is much higher than traditional finance. If regulatory restrictions are lifted, it will unleash tremendous growth potential.

In March 2023, a research team led by Giulio Cornelli at the University of Zurich published a paper in the Journal of Banking and Finance on the importance of loans from large tech companies. The study shows that a clear fintech regulatory framework can double the growth of new lending activities (one study shows that FinTech lending volume increases by 103% when there is clear regulation). The same applies to crypto lending: clear policies attract capital.

Lending market size, source: magistral consulting

Therefore, in the era where more and more assets are being put on-chain in the RWA field, one of the biggest beneficiaries after compliance may be the on-chain lending industry. Currently, in the Crypto space, due to the lack of big data support like the "government credit scoring" system in traditional finance, it can only focus on "collateral assets". As a result, DeFi is venturing into the secondary debt market to diversify risk. Therefore, private credit assets currently account for about 60% of on-chain RWA, approximately 14 billion USD.

Behind this wave is the deep involvement of traditional institutions, among which the largest is Figure, which is currently discussing going public. Its Cosmos ecosystem chain, Provenance, is designed specifically for asset securitization and loan financial scenarios. As of August 10, 2025, it has custodied approximately $11 billion in private credit assets, accounting for 75% of this sector. Its founder, Mike Cagney, is the former founder of SoFi and as a "serial entrepreneur" in the lending field, this allows him to excel in blockchain lending. The platform has streamlined the entire chain of loan initiation, tokenization, and secondary trading.

The second place is Tradable, which has partnered with the asset management company Janus Henderson, managing $330 billion in assets. They tokenized $1.7 billion in private credit on Zksync at the beginning of the year (which also made Zksync the second largest "lending chain"). The third place is the "world computer" Ethereum, but its market share in this field is only 1/10 of Provenance.

Left: "Credit Public Chain" Market Value, Right: Credit Project Market Value, Source: RWAxyz

DeFi native platforms are also entering the RWA lending market. For example, Maple Finance has facilitated loans exceeding $3.3 billion, with current active loans of approximately $777 million, some of which are aimed at real accounts receivable. MakerDAO has also started to allocate real assets such as government bonds and commercial loans, and platforms like Goldfinch and TrueFi have also made early moves.

All of this was suppressed under regulatory hostility, but now the "policy warming" may completely activate this sector.

For example, Apollo has launched its flagship credit fund ACRED's tokenized fund, allowing investors to mint sACRED tokens through Securitize to represent their shares, and then use these tokens for lending arbitrage operations on DeFi platforms (such as Morpho on Polygon). Using the RedStone price oracle and the Gauntlet risk control engine, sACRED is collateralized to borrow stablecoins, which are then leveraged to repurchase ACRED, thereby leveraging the base yield of 5–11% to an annualized 16%. This innovation combines institutional credit funds with DeFi leverage.

sACRED Circular Loan Structure, Source: Redstone

In the long term, the 401(k) reforms will indirectly benefit on-chain credit. Wintermute's over-the-counter trader Jake Ostrovskis stated that the impact of this move cannot be underestimated. "Just a 2% allocation to Bitcoin and Ethereum is equivalent to 1.5 times the cumulative ETF inflow so far, and a 3% allocation would more than double the total market inflow. The key is that these buyers are mostly price insensitive; they focus on meeting allocation benchmarks rather than engaging in tactical trading." The demand for returns from traditional pensions is expected to stimulate interest in investing in stable, high-yield DeFi products. For example, tokenized assets based on real estate debt, small business loans, and private credit pools, if packaged compliantly, could become a new option for pensions.

The top 10 on-chain lending projects by market share, source: RWAxyz

Under the premise of clear regulations, these types of institutional "DeFi credit funds" may be quickly replicated. After all, most large institutions (Apollo, BlackRock, JPMorgan) have viewed tokenization as a key tool for enhancing market liquidity and returns. After 2025, as more assets (such as real estate, trade financing, and even mortgages) are tokenized on-chain, on-chain credit is expected to become a market worth trillions of dollars.

Transform 5*6.5 hours of "American value" into "on-chain US stocks" that people around the world can play 7*24 hours.

The US stock market is one of the largest capital markets in the world. As of mid-2025, the total market capitalization of the US stock market is approximately $50–55 trillion (USD), accounting for 40%–45% of the total market capitalization of global stock markets. However, this enormous "American value" has long been tradable only within a weekly window of 5 days and about 6.5 hours each day, with clear regional and time limitations. Today, this situation is being rewritten, as on-chain US stocks allow global investors to participate in the US stock market 24/7.

On-chain US stocks refer to the digitalization of the stocks of US-listed companies into tokens on the blockchain, with their prices anchored to real stocks and supported by actual stocks or derivatives. The biggest advantage of tokenized stocks is that trading time is no longer limited: traditional US stock exchanges are only open for about 6.5 hours each working day, while blockchain-based stock tokens can be traded continuously around the clock. Currently, the tokenization of US stocks is mainly achieved through three directions: third-party compliant issuance + multi-platform access model, licensed brokerage self-issued + closed-loop on-chain trading, and Contract for Difference (CFD) model.

At this stage, the market has seen a variety of tokenized US stock projects, from Republic's launch of the "Pre IPO" mirror coin, to Hyperliquid's ability to go short and long on "Pre IPO" with Ventuals, and the dual tremors caused in both the TradeFi and crypto circles by Robinhood, the collaborative effort of multiple institutions with xStocks, the MyStonk that allows for stock dividends, and the upcoming integration of brokerage + on-chain token dual-track play in DeFi with StableStock.

This trend is underpinned by the rapid clarification of the regulatory environment and the entry of traditional giants. The Nasdaq Stock Exchange has proposed the creation of a digital asset version of an ATS (Alternative Trading System), allowing tokenized securities and commodity tokens to be listed and traded together to enhance market liquidity and efficiency. SEC Commissioner Paul Atkins has likened the on-chain transformation of traditional securities to the digital revolution of music carriers: just as digital music has disrupted the music industry, the on-chainization of securities is expected to achieve a new model for issuance, custody, and trading, reshaping every aspect of capital markets. However, this field is still in its early stages, and compared to other RWA sectors that easily reach tens of billions of dollars, the growth potential in the U.S. stock tokenization space seems larger. Currently, the total market capitalization of on-chain stocks is still less than $400 million, and the monthly trading volume is only around $300 million.

The actual problems that need to be addressed for this issue include not only the lack of a comprehensive compliance pathway but also the complexity of regulations for institutional entry and the significant friction in the deposit process. However, for most users, the primary issue to resolve is actually the lack of liquidity. Tech investor Zheng Di stated that the high OTC costs have resulted in two distinct groups: those who invest in U.S. stocks and those who participate in blockchain. "If you deposit through OTC, you have to bear costs of over a thousand, and if you use a licensed exchange like Coinbase in Singapore, you also have to add about 1% in fees and 9% in consumption tax. Therefore, the money in the crypto space and the money in traditional brokerage accounts are essentially two separate systems, and they do not really connect, which is akin to fighting on two battlefields."

For this reason, on-chain US stocks currently resemble a teacher who wants to "educate" the group of Degen players to accept the "training" of basic knowledge about US stocks, while at the same time shouting to those accustomed to traditional brokers that here is "open 7*24". The founder of StableStock, ZiXI, categorized users playing on-chain US stocks into three types in an interview without reservation and analyzed why on-chain US stocks are "needed" in the usage scenarios of these users:

Novice users: primarily distributed in countries with strict foreign exchange controls such as China, Indonesia, Vietnam, the Philippines, and Nigeria. They hold stablecoins but, due to various restrictions, are unable to open bank accounts overseas and cannot smoothly purchase traditional U.S. stocks.

Professional users: They have both stablecoins and overseas bank accounts, but the leverage ratio of traditional brokers is too low, for example, Tiger's leverage multiple is only 2.5 times. However, on-chain, by setting a higher LTV (Loan-to-Value ratio), high leverage can be achieved. For instance, with an LTV of 90%, 9 times leverage trading can be accomplished.

High net worth users: Long-term holding of US stock assets, may earn interest, dividends or benefit from stock price appreciation through margin trading in traditional brokerage accounts. Once their stocks are tokenized, they can provide liquidity, lend, and even perform cross-chain operations on the blockchain.

From the Robinhood conference to Coinbase submitting a pilot application to the SEC to become one of the first licensed institutions in the U.S. to offer "on-chain U.S. stocks" services. Coupled with the SEC's positive statement from the Corporate Finance Division regarding liquid staking, it can be anticipated that as the policy bull market progresses, on-chain U.S. stocks will gradually integrate into the DeFi system, thereby building relatively deep liquidity pools. The U.S. value, which was once limited to 5×7 hours of trading, is accelerating its transformation into an on-chain equity market that global investors can participate in at any time, regardless of time zones. This not only greatly expands the asset landscape for crypto investors but also introduces around-the-clock liquidity to the traditional stock market, marking Wall Street's move towards the "Super-App Era" of on-chain capital markets.

The renaming of pledged assets, the rise of DeFi

In this favorable regulatory environment, one of the biggest winners is undoubtedly the DeFi derivative protocols. The SEC's endorsement of liquid staking has paved the way for them, making it one of the most relevant pieces of good news for "Crypto Native" players. Previously, the SEC held a hostile attitude toward centralized staking services, forcing exchanges to delist staking services, which raised concerns about whether Lido's stETH and Rocket Pool's rETH were unregistered securities. However, in August 2025, the SEC's Division of Corporation Finance issued a statement clarifying that "as long as the underlying assets are not securities, then LSTs are also not securities." This clear policy signal is regarded by the industry as a watershed moment for the legitimization of staking.

This not only benefits staking itself but also activates a whole set of DeFi ecosystems based on staking: from LST collateralized lending, yield aggregation, re-staking mechanisms, to yield derivatives built on staking, etc. More importantly, the clarity of U.S. regulations means that institutions can legally participate in staking and related product allocations. The current locked amount of ETH in liquid staking is about 14.4 million coins, and the growth is accelerating. According to data from Defillama, from April to August 2025, the TVL of LST locked has soared from 20 billion dollars to 61 billion dollars, returning to historical highs.

The SosoValue DeFi index sector has outperformed the recently strong ETH over the past month, source: SosoValue

Since a certain point in time, these DeFi protocols seem to have formed some consensus and started deep cooperation with each other. They not only connect their institutional resources but also work together on the revenue structure, gradually forming systematic "yield flywheels."

For example, the integrated feature recently launched by d Ethena and Aave allows users to gain leveraged exposure to sUSDe interest rates while maintaining better liquidity of the overall position by holding USDe (without cooling-off period restrictions). One week after its launch, the Liquid Leverage product has attracted over $1.5 billion in inflows. Pendle splits yield-bearing assets into principal (PT) and yield (YT), forming a "yield trading market." Users can purchase YT with smaller amounts of capital to seek high returns, while PT locks in fixed yield, making it suitable for conservative investors. PT is used as collateral on platforms like Aave and Morpho, forming the infrastructure of the yield capital market. Additionally, with the recently established partnership with Ethena, Pendle's new plan "Project Boros" extends the trading market to the Funding Rate of perpetual contracts, allowing institutions to hedge against Binance contract rate risks on-chain.

mint pt

Many institutions have entered this field early in recent years through various means, such as JP Morgan's lending platform Kinexys, as well as BlackRock, Cantor Fitzgerald, and Franklin Templeton. The clarification of policies will facilitate the acceleration of DeFi protocols connecting with TradFi, ultimately extending the narrative of selling apples in the village, like turning 1 dollar into 30 dollars.

American public chains and the world computer

Domestic public chain projects in the United States are迎来政策东风. The "CLARITY Act" passed in July proposes standards for a "mature blockchain system," allowing cryptocurrency projects to transition from securities to digital commodity assets after their networks have matured in decentralization. This means that public chains and their tokens, which have a high degree of decentralization and compliance by the team, are expected to gain commodity attributes and be regulated by the Commodity Futures Trading Commission (CFTC) rather than the SEC.

KOL @Rocky_Bitcoin believes that the advantages of the U.S. financial center are beginning to shift towards the crypto space. "CFTC and SEC have clear divisions of labor, and the U.S. wants to be not only large in trading volume but also a project incubation hub in the next bull market." This is a great benefit for American public chains like Solana, Base, Sui, and Sei. If these chains can natively adapt to compliance logic, they may become the main networks for the next USDC and ETFs.

For example, asset management giant VanEck has applied for a Solana spot ETF, stating that SOL functionally resembles Bitcoin and Ethereum, and thus should be regarded as a commodity. Coinbase also launched CFTC-regulated Solana futures contracts in February 2025, accelerating institutional participation in SOL and paving the way for the future launch of a SOL spot ETF. This series of measures indicates that under the new regulatory approach, certain "American public chains" are gaining a status and legitimacy similar to that of commodities, becoming an important bridge for traditional funds to go on-chain, and allowing established institutions to confidently migrate value onto public chains.

At the same time, Ethereum, the "world computer" of the crypto world, has clearly benefited from the policy shift, as the new regulations restrict "insider trading and quick issuance of tokens for cashing out," favoring mainstream cryptocurrencies with actual construction and stable liquidity. As the most decentralized public chain in the world, with the most developers and one of the few that has never gone down, Ethereum has already borne the throughput of the vast majority of stablecoins and DeFi applications.

Today, the U.S. regulatory authorities have basically recognized the non-security nature of Ethereum. In August 2025, the SEC issued a statement clarifying that as long as the underlying asset, such as ETH, is not a security, the liquid staking certificates anchored to it also do not constitute securities. Moreover, the SEC has previously approved spot ETFs for Bitcoin and Ether, which in fact corroborates Ethereum's status as a commodity.

With regulatory endorsement, institutional investors can participate more boldly in the Ethereum ecosystem, whether it is issuing on-chain government bonds, stocks, and other RWA assets, or using Ethereum as a clearing and settlement layer to connect with TradFi businesses, all becoming realistic and feasible. It is foreseeable that while "American public chains" compete for compliance expansion, the "world computer" Ethereum remains the backbone of global on-chain finance. This is not only due to its first-mover advantage and network effects but also because this round of policy dividends has opened a new door for it to deeply integrate with traditional finance.

Did the policy really bring about a bull market?

Whether it is the "stablecoin bill" establishing the compliant status of USD-backed assets, or the blueprint for on-chain capital markets outlined by "Project Crypto," this top-down policy shift has indeed brought unprecedented institutional space to the crypto industry. However, historical experience shows that regulatory friendliness does not equate to unlimited openness; the standards, thresholds, and implementation details during the policy trial period will still directly determine the life and death direction of various tracks.

From RWA, on-chain credit to staking derivatives and on-chain US stocks, almost every track can find its position in the new framework, but their real test may be whether they can maintain the efficiency and innovation native to crypto while complying with regulations. The global influence of the US capital markets and the decentralized characteristics of blockchain truly merging will depend on the long-term game among regulators, traditional finance, and the crypto industry. The direction of policies has shifted; the next key is how to grasp the rhythm and control the risks, which will determine how far this "policy bull market" can go.