What did the new SEC chairman say last night? --The post encryption era is coming Paul S. Atkins, the Chairman of the US Securities and Exchange Commission (SEC) and also known as the Crypto Tsar, delivered a keynote speech at the roundtable conference last night on "tokenization: asset on chain - the intersection of traditional finance and decentralized finance". He is a key influential figure in the development of the encryption industry in the coming years, and as a new official, he has become a hot topic. It is important to understand what he wants to do. So I roughly organized the key points of his speech and the potential impact it may have on the industry in the future. Provincial version: He just wants to establish clear rules and stop managing the market through a 'one punishment, one scare' approach. Everyone knows where the boundaries lie, allowing the cryptocurrency industry to innovate and issue coins with peace of mind. In addition, building the United States into the world's toughest cryptocurrency hub (with the possibility of a new compliant token issuance platform - Crypto NASDAQ). If you are interested, you can go down to the details or scroll down to the bottom to see my speculations on possible changes in the industry. ~~~~~~~~~~~~~~~~~ Summary of key points of the speech: 1. Clarify the rules for issuing encrypted assets: Atkins pointed out that the existing registration forms and disclosure requirements are difficult to adapt to the characteristics of encrypted assets, leading to many project parties avoiding the registration process. He proposed to provide clear and reasonable guidance for the issuance of encrypted assets through the development of new rules and exemption mechanisms. 2. Expand asset custody options: He supports providing more cryptocurrency custody options for registered institutions, including allowing compliant self custody under certain conditions to meet the needs of technological development. 3. Enriching the range of trading products: Atkins advocates allowing registered institutions to provide a wider range of trading products based on market demand, breaking restrictions on cryptocurrency trading, and promoting integrated trading of securities and non securities assets. This speech marks an important step forward for the SEC in regulating cryptocurrency assets, providing industry participants with clearer policy expectations and foreshadowing a more standardized and diversified development stage for the cryptocurrency market. ~~~~~~~~~~~~~~~~~ What impact will it have on all parties in the industry if it is implemented? CEX will further streamline: -American exchanges may be the first to integrate compliant issuance portals, such as Coinbase, which already have legal reserves and regulatory experience, and are expected to become the first batch of "crypto Nasdaq exchanges". -@ Binance and other pan Asian exchanges need to make strategic choices: either accelerate their overseas layout and compliance integration, or choose to focus on the "non-US market" and continue to occupy the main battlefield of retail investors. Simply put, either accept surrender and become a regular army, or become a bandit and a mountain king. There are no gray areas left. Project diversion: For projects with strong capabilities, it is highly likely that they will lean towards compliance platforms (hereinafter collectively referred to as crypto Nasdaq), as legitimate funds and institutions will be more inclined to invest in projects issued on compliance platforms, driving the new paradigm of "compliance first, then financing". Tokens issued by compliance platforms have the opportunity to gain greater liquidity and long-term investors, as compliance assets can be recorded in official accounts and avoid SEC accountability risks, making it easier for institutions that were previously unable to invest - this is new blood. Token diversion: If compliance is to be achieved, then the nature of the token will begin to have a clear legal definition, and the project party must specify whether it is an "equity, debt, or functional" token, rather than simply using a "governance token" to deal with it. The valuation logic is more like that of the US stock market: factors such as P/E, revenue dividends, and regulatory compliance become valuation anchors, and simple narrative and pure meme speculation will be suppressed. Simply put, your token either conforms to the valuation logic of the US stock market or is completely memed. Don't try to get caught up in it. Retail investor diversion: Retail investors can participate in new listings and early subscriptions through compliance platforms, but the participation threshold may be raised, and specific products may be required to be only open to "qualified investors", such as the American "Accredited Investor". The advantage is that in the future, trading counterfeit coins will be conducted openly and honestly, similar to trading stocks. It is no longer a self promotion for niche groups, and may further open up the participation audience. Moreover, due to the clear valuation logic, the possibility of many Tianwang projects plummeting by 90% after their launch has been greatly reduced. It is possible that there will be a new wealth effect, and I will definitely register to participate as soon as possible. ~~~~~~~~~~~~~~~~~~ last: It seems that the crypto czar is going to do a big job of formalizing the crypto market, which is a good thing for the crypto industry that has been born for over a decade, as it cannot continue to grow wildly forever. Where there is change, there is opportunity. Are you ready?