New US Regulatory Policy: Opening a New Era of On-Chain Finance

On July 31, the chairman of the U.S. Securities and Exchange Commission (SEC) announced a significant initiative called "Project Crypto." This on-chain reform plan led by the SEC aims to fundamentally reshape the regulatory logic of the United States in the era of crypto assets, promote the transition of financial markets to blockchain, and achieve the grand goal of making the U.S. the "world crypto capital."

Unlike the regulatory crackdown tone of the past few years, the launch of "Project Crypto" sends a strong signal to the entire industry: the era of blockchain in the United States has officially begun. This marks a shift in regulatory thinking from "replacing regulation with enforcement" to a more inclusive and innovative direction.

DeFi Protocols Embrace Development Opportunities

After the new SEC chairman took office, there was a fundamental shift in regulatory style. He quickly initiated a roundtable discussion titled "DeFi and the American Spirit" to ease regulations on DeFi.

In Project Crypto, the chairman clearly stated that the original intention of the U.S. federal securities law is to protect investors and market fairness, rather than to curb technology architectures that do not require intermediaries. He believes that decentralized financial systems, such as automated market makers (AMM), can essentially achieve non-intermediated financial market activities and should be granted legitimate status at the institutional level. Developers who "just write code" should be provided with clear protections and exemptions; whereas intermediaries wishing to provide services based on these protocols should have clear and enforceable compliance pathways.

The shift in this policy approach undoubtedly releases positive signals for the entire DeFi ecosystem. Especially those protocols that have long formed on-chain network effects and possess highly autonomous designs will gain institutional recognition and development space under the logic of de-intermediation regulation. Protocol tokens that have long suffered from the "securities shadow" are also expected to reshape their valuation logic in the context of policy easing and the return of market participants, becoming "mainstream assets" in the eyes of investors once again.

Super-App will reshape the trading platform landscape

The SEC Chairman proposed the highly transformative concept of "Super-App" in his speech. He believes that current securities intermediaries face cumbersome compliance structures and redundant licensing barriers when providing traditional securities, crypto assets, and on-chain services, which directly hinder product innovation and upgrades in user experience. He suggested that future trading platforms should be able to integrate various services, including non-securities crypto assets, securities crypto assets, traditional securities, as well as staking, lending, and more, under a single license. This is not only a compliance innovation that simplifies processes but also the core of competitive strength for future platform-based companies.

The regulatory authorities will promote the implementation of this super application architecture. The SEC will draft a regulatory framework that allows crypto assets to coexist and trade on SEC-registered platforms, regardless of whether they constitute securities. Meanwhile, the SEC is also assessing how to utilize existing powers to relax the listing conditions for certain assets on non-registered exchanges. The overall direction of regulatory reform is to break the binary boundary between securities and non-securities, allowing platforms to flexibly allocate assets based on product nature and user needs, rather than being constrained by compliance structures.

Some trading platforms are expected to be the first to benefit from policy dividends - achieving one-stop services and integrating on-chain products with traditional user groups. If they can integrate traditional securities with on-chain assets at the compliance level in the future, these platforms are very likely to develop into "on-chain versions of Charles Schwab" or "next-generation Morgan Stanley" - not only as asset entry points but also as complete financial tool distribution and operation platforms.

It is foreseeable that once the Super-App architecture is fully released, it will become the core battleground for competition among trading platforms. Whoever can achieve compliant "multi-asset aggregated trading" first will be able to take the lead in the next round of financial infrastructure upgrades. For users, this means a smoother trading experience, a richer selection of products, and a financial world closer to the future.

ERC-3643: The Compliance Bridge for the RWA Track

In terms of the tokenization of real-world assets (RWA), the SEC chairman clearly stated that he would promote the tokenization of traditional assets and specifically mentioned ERC-3643 as a token standard worth referencing in the regulatory framework. This is also the only token standard publicly mentioned throughout the speech, indicating that ERC-3643 has risen from a technical protocol to a policy-level reference model.

The SEC chairman emphasized that when designing the innovation exemption framework, priority will be given to token systems that have "built-in compliance capabilities." The smart contract of ERC-3643 integrates mechanisms such as permission control, identity verification, and transaction restrictions, which can directly meet the current securities regulations for KYC, AML, and qualified investors.

The biggest feature of ERC-3643 lies in its "compliance is code" design philosophy. It incorporates a decentralized identity framework where all token holders must undergo identity verification and comply with pre-set rules before they can hold or transfer their tokens. Regardless of which public chain the tokens are deployed on, only users who meet KYC or qualified investor standards can truly own these assets. The smart contract layer completes the compliance assessment, eliminating the need for centralized audits, manual records, or off-chain protocols.

Currently, ERC-3643 has been adopted by multiple countries and financial institutions around the world. From real estate to art collections, from private equity to supply chain notes, ERC-3643 provides underlying support for the fragmentation, digitization, and global circulation of various assets. It is currently the only public chain token standard that combines programmable compliance, on-chain identity verification, cross-border legal compatibility, and the ability to interface with existing financial infrastructure.

The future securities market must not only "operate on-chain" but also "comply on-chain". In this new era, ERC-3643 may become the key bridge connecting the SEC with Ethereum and linking traditional finance with decentralized finance.

Entrepreneurs Returning to the U.S., Primary Market Resumes

In the latest released Project Crypto policy, the SEC chairman has for the first time clearly stated: a reclassification standard for crypto assets will be developed to provide clear disclosure regulations, exemption conditions, and safe harbor mechanisms for common on-chain economic activities such as airdrops, ICOs, and Staking. The SEC will no longer default to "issuing tokens = securities," but will reasonably categorize them into different categories such as digital commodities, digital collectibles, stablecoins, or security tokens based on the economic properties of the assets, and provide appropriate legal pathways.

This represents a critical turning point: project teams will no longer need to "pretend not to issue tokens", nor will they need to use roundabout structures like foundations or DAOs to conceal their incentive mechanisms. Furthermore, there will be no need to register projects in the Cayman Islands. Instead, teams that genuinely focus on code and have technology as their core driving force will receive institutional validation.

In the current context where emerging sectors such as artificial intelligence, decentralized physical infrastructure, and social finance are rapidly rising, and the market's demand for early-stage financing has surged, this regulatory framework based on substantive classification and encouragement of innovation is expected to spark a wave of projects returning to the United States. The U.S. is no longer a market that crypto entrepreneurs avoid, but may once again become their preferred choice for issuing tokens and raising funds.

Summary

"Project Crypto" depicts a future that merges decentralized software, token economies, and the compliance of capital markets. The SEC chairman's stance is also very clear: "Regulation should no longer stifle innovation, but rather make way for it."

For the market, this is a clear signal of a policy shift. From decentralized finance to the tokenization of physical assets, from super applications to fundraising through token issuance, who can stand out in this round of policy dividends depends on who can respond first to this U.S.-led "on-chain capital market revolution."