Trump's crypto era: STO may explode as a new financing channel to replace IPO/M&A Since Trump took office, the fields of cryptocurrency and blockchain have undergone unprecedented changes. From appointing the "new emperor of encryption" to personally releasing Meme coins, Trump's actions undoubtedly pressed the "accelerator button" for the entire industry. In the "crypto era" initiated by Trump, in addition to ushering in a "chaotic era" for the "casino nature" of blockchain, there is also a trend worth paying close attention to: security token issuances (STOs) may become a new financing channel to replace traditional IPOs and M&A, and trigger a wave of explosion. Recently, I have seen Balaj @ balajis' views, which happen to be related to some of the areas that Spinach is concerned about and his past experiences. Spinach believes that STO may "return to the market". Here are some of Spinach's personal opinions: Small and medium-sized enterprises: economic cornerstone, financing difficulties highlighted Some friends should know that Spinach is working with central banks in some countries. During the time of working with these people, they also learned a lot about what they are doing, most of which are related to solving financing problems for small and medium-sized enterprises. In fact, small and medium-sized enterprises (SMEs) are the lifeblood of the global economy - in developed economies such as the United States and Europe, over 80% of job opportunities are created by SMEs. However, currently small and medium-sized enterprises worldwide are facing difficulties in financing, especially in the context of high inflation and rising interest rates, where bank loans and traditional financing have become more expensive. High threshold listing: the root cause of financing difficulties The difficulty in financing is naturally related to the high threshold and low efficiency. In terms of various financing and lending operations, not to mention the troubles faced by banks, we mainly talk about going public. Taking the United States as an example, the enactment of the Sarbanes Oxley Act in 2002 significantly increased the cost of IPOs for companies, resulting in a heavy compliance burden. According to Balaj's tweet, this bill has led to a halving of the number of publicly traded companies in the United States from its peak in 1999, particularly affecting small and medium-sized enterprises, which are deterred by the millions of dollars in IPO fees and cumbersome processes. Why did STO not get up in the past? Regulation is the core pain point Blockchain is a powerful tool for lowering financial barriers, and many traditional financial institutions have also realized this and are laying out their strategies. Among them, STO is a new listing channel for financing various enterprises. By issuing tokens through blockchain to represent equity or assets, not only does it significantly reduce financing costs and compliance barriers, but it also enables global investors to participate - retail investors from New York to Southeast Asia and even Africa can easily participate in investments. Compared to traditional IPOs, STOs eliminate a large number of intermediary links, resulting in higher efficiency and enormous potential. However, the development of STO in the past was not smooth, with a small market size, insufficient liquidity, and even jokingly referred to as a "joke". Spinach believes that the core reason lies in unclear regulation, insufficient and immature market awareness. STO is not simply a "casino logic", but an investment tool similar to company stocks - investors can speculate in the short term or invest in long-term value. However, in the absence of clear regulations and supervision, the unclear attitude of regulatory agencies is hindered layer by layer, and the rights and interests of investors cannot be guaranteed. Market confidence is insufficient, and it is difficult to involve investors who participate in traditional securities investment. Therefore, STO is difficult to scale up. Trump Era: Clear Regulation, Promising STO Era After Trump took office, encryption regulatory policies accelerated. The Financial Innovation and Technology for the 21st Century Act (FIT21) was passed by the House of Representatives in 2024, which clearly defines the regulatory rules for security type tokens and commodity type tokens. And Hester Peirce, who previously proposed the "Token Safe Harbor Proposal" and became known as the "crypto mom", has also been appointed by Trump as the head of the SEC's cryptocurrency task force after several years of silence, and is very likely to see the real implementation of the Token Safe Harbor. The Trump administration has appointed Paul Atkins, the pro crypto SEC chairman, and David Sacks, the "crypto and AI czar," who are also supporting the Bitcoin National Reserve, and the entire regulatory environment in the United States is becoming clearer. Once the regulatory framework is established, the United States is highly likely to embark on an STO boom, becoming a new listing channel to replace IPOs. A large number of small and medium-sized enterprises in the United States will benefit greatly, and the entire Web3 industry may also usher in a healthy development. epilogue Trump's crypto era not only features the hustle and bustle of Meme PVP casinos, but also the quiet waters of STO and truly valuable applications. What is your vision for the future of the crypto industry? 👀 If you like this content, please follow @ bocaibocai_, one click triple connection support!! 💪