The regulatory direction in the cryptocurrency space has always been the 'anchor' that influences the market! Recently, SEC Chairman Paul Atkins dropped a bombshell at the global financial markets roundtable, clearly stating that Bitcoin will become the foundation of the global financial system and announced a 'crypto plan' to loosen regulations for the industry. As a blogger who has been navigating the cryptocurrency space for many years, I will break down the signals behind this statement in simple terms and its practical impact on our investments.
First, let’s highlight the key points. The SEC Chairman's statement this time is not just a casual remark but comes with a solid policy shift. It’s important to know that in previous years, under Gary Gensler's leadership, the SEC focused on 'enforcement over regulation', initiating over a hundred crypto-related cases in four years, with total fines exceeding $6 billion, leaving the industry in a state of anxiety. But now that Atkins has taken office, he has directly changed the course—not only clearly stating that Bitcoin is a 'digital commodity' rather than a security, thus excluding it from securities regulation, but also proposing to establish clear and predictable rules so that entrepreneurs no longer have to worry about legal uncertainties, and even pushing for the U.S. to become the 'global crypto capital'. This shift from 'suppression' to 'embrace' is extremely rare in SEC history.
Some friends may ask why the SEC suddenly has a different view on Bitcoin and claims it can become the foundation of global finance. The core reason is actually quite simple: Bitcoin's underlying logic and global recognition can no longer be contained. From a technical perspective, the distributed ledger of blockchain enables transparency and traceability, and the SHA-256 algorithm ensures security. Even if someone wants to tamper with transactions, the cost would exceed billions of dollars. This decentralized trust mechanism perfectly addresses the pain points of traditional finance. In terms of practical application, using the Bitcoin Lightning Network for cross-border payments can reduce fees from several dozen dollars in traditional SWIFT to just a few cents, and the time for funds to arrive can shrink from days to seconds, also covering those without bank accounts, highlighting the value of inclusive finance. More importantly, not only has El Salvador incorporated Bitcoin into its national balance sheet, but giants like JP Morgan have also started accepting Bitcoin as collateral, and its financial attributes are no longer considered a 'niche asset' as they once were.
This policy shift has a chain reaction effect on the market. The most immediate impact is that institutional funds will be more willing to enter; previously, due to regulatory ambiguity, many large funds wanted to invest but didn't dare to. Now that the SEC has clarified the boundaries, there are clear pathways for Bitcoin custody and trading. Additionally, the previous ban on banks providing crypto custody has been lifted, significantly lowering the threshold for institutions to allocate Bitcoin. Moreover, this statement also mentioned support for 'super applications' that allow platforms to provide trading, lending, and staking services under the same framework, which will enhance liquidity in the crypto market and attract more traditional users. Furthermore, global regulation will also be interconnected; the EU has long had the MiCA regulation, and now the U.S. is catching up, leading to a more comprehensive global regulatory framework for crypto, allowing the industry to no longer grow wildly in a 'gray area.'
However, we shouldn't be blindly optimistic; there are a few details to pay attention to. First, the SEC's friendly attitude mainly targets Bitcoin, while altcoins still remain in the regulatory gray area. The new framework clearly categorizes crypto assets into four types, with only Bitcoin, which does not rely on centralized management and is considered a 'digital commodity,' being exempt. Projects relying on team operations and governance tokens may still be classified as securities and face regulatory risks. Secondly, implementing policies takes time; although the 'crypto plan' sounds promising, the specific rules need to be formulated and coordinated with other institutions, which will take time, and the market may still experience fluctuations in the short term. Additionally, international regulatory coordination is not achieved overnight; differences in rules among various countries still exist, and the industry has a long way to go to fully standardize.
For ordinary investors like us, this statement actually provides two clear signals. First, Bitcoin's long-term position is more stable; as a 'digital commodity' recognized by regulators, its 'digital gold' property will be further strengthened, making it suitable as part of a long-term asset allocation. Second, investment should focus more on compliant sectors, steering clear of altcoins that have no practical application and rely solely on speculative hype. After all, regulation will only become stricter, and the risks of stepping on landmines are too great. Seagull has always said that investing in the crypto space is not about being bold but about understanding trends and risks. Now that regulatory dividends are slowly being released, it is not risk-free arbitrage. We still need to lay out our investments rationally and avoid blindly chasing highs.
Ultimately, when the SEC chairman referred to Bitcoin as the foundation of global finance, it essentially recognized the industry value of crypto assets and marked the transition of the crypto industry from 'wild growth' to a new era of 'compliant development.' This is neither a signal that Bitcoin will soar immediately nor an instruction for everyone to enter without thinking; rather, it reminds us that the rules of the crypto market have changed, and compliance and value are the core of the future. Do you think this regulatory shift will bring about a new wave of institutional interest in Bitcoin?
