「White House Prepares to Issue Executive Order to Punish Banks Discriminating Against Cryptocurrency Companies」, during this time, a piece of news has been circulating on social media, and those who have been in the cryptocurrency industry for more than two years must rub their eyes to confirm it, marveling at the sense of being in a different world.

However, just over a year later, in March 2023, "Operation Chokepoint 2.0" was fully implemented, during the Biden administration. Regulatory bodies such as the Federal Reserve, FDIC, OCC, among others, issued a joint statement categorizing cryptocurrency businesses as a "high-risk" area, requiring banks to rigorously assess the risk exposure of crypto clients. Regulatory pressure forced crypto-friendly banks like Signature Bank and Silvergate Bank to close core services and restrict new client onboarding. Developers of payment and trading platforms should especially feel the impact at this time. Publicly-listed crypto companies like Coinbase were caught in the middle, forced to invest hundreds of millions of dollars in establishing an independent banking network. Small and medium-sized crypto startups, unable to meet KYC/AML requirements, resorted to significant offshore registrations.

Moreover, in the past month, the rapidly changing policy landscape has almost entirely redefined all types of crypto assets, including stablecoins, DeFi, ETFs, and LST, among others. The accelerated entry of traditional financial institutions and the prevalence of crypto-native companies have created a strong sense of fragmentation. Besides giving the signal for "institutions" to take off, what opportunities can we find in these regulations?

Four Statements, Three Bills, Two Executive Orders

Before interpreting them, let's first take a full look back at some of the developments in August by the US government and regulatory bodies. Although they appeared dense and fragmented, like puzzle pieces, they pieced together the current US crypto regulatory blueprint:

July 18th - Trump Signs the GENIUS Act

This act established the first federal-level stablecoin regulatory framework in the US, which includes:

  A requirement for payment-type stablecoins to be 100% backed by the US dollar or short-term government securities and to undergo monthly disclosures.

  Stablecoin issuers must obtain a "federally qualified issuer" or "state-qualified issuer" license.

  The act prohibits issuers from paying interest to holders and requires priority protection of stablecoin holders in case of bankruptcy.

  The act clearly defines payment-type stablecoins as not securities or commodities.

July 17th - House Passes the CLARITY Act

This act aims to establish the market structure for crypto assets, including:

 Explicitly assign jurisdiction to the CFTC (regulating digital commodities) and SEC (regulating security-based digital assets).

 Allow projects to transition from security to commodity through temporary registration once the network matures, providing a safe harbor for developers, validators, and other decentralized participants, with the CLARITY Act creating a Securities Act Section 4(a)(8) exemption for digital commodity issuance, setting a 12-month fundraising cap of $50 million, and using a "mature blockchain system" test to determine if the network is free from any individual or team control.

July 17: House Passes Anti-CBDC Surveillance State Act

The House passed this bill to prohibit the Fed from issuing a central bank digital currency (CBDC) to the public and ban federal agencies from researching and developing CBDCs. Representative Tom Emmer explained that CBDCs could become a "government surveillance tool," with the bill enshrining the President's executive order banning CBDC development into law to protect citizen privacy and freedom.

July 29: SEC Approves Bitcoin and Ethereum Spot ETFs with "Physical Custody"

The Commission approved cryptocurrency trading products such as Bitcoin and Ethereum to allow for creation and redemption of shares with cryptocurrency assets instead of cash, meaning Bitcoin and Ethereum will receive treatment similar to commodities like gold.

July 30: White House Releases 166-Page Digital Asset Market Working Group Report (PWG Report)

The White House Digital Asset Working Group released a 166-page report outlining a comprehensive crypto policy blueprint, including:

 Emphasizing the establishment of a digital asset classification system to differentiate security tokens, commodity tokens, and business/consumer tokens.

 Requesting Congress to empower the CFTC to regulate non-security digital asset spot markets based on the CLARITY Act and embrace DeFi technology.

 Proposing that the SEC/CFTC expedite the release of crypto asset issuance and trading through exemptions, safe harbors, and regulatory sandboxes.

 Suggesting the reinvigoration of crypto innovation in the banking sector, allowing banks to custody stablecoins, and clarifying the process for obtaining Federal Reserve accounts.

July 31, August 1: SEC's "Project Crypto" Initiative, CFTC's "Crypto Sprint" Initiative

In a speech at the U.S. Securities and Exchange Commission, Atkins launched the "Project Crypto" initiative, aiming to modernize securities regulations to bring the U.S. capital markets on-chain. The SEC will establish clear rules for crypto asset issuance, custody, and trading, and will use interpretive guidance and exemptions to ensure that traditional rules do not hinder innovation. Specific details include:

 Guiding crypto asset issuance back to the U.S., establishing clear standards distinguishing categories such as digital commodities, stablecoins, and collectibles.

 Revising custody regulations, emphasizing the right of individuals to self-custody digital wallets and allowing registered intermediaries to provide crypto custody services.

 Promoting "super apps" to enable brokerage firms to trade both securities and non-securities crypto assets on a single platform, providing services such as staking and lending.

 Updating rules to accommodate decentralized finance (DeFi) and on-chain software systems, clearly distinguishing between pure software publishers and intermediary services, and exploring innovative exemptions to allow new business models to enter the market quickly under a "light-touch" compliance approach.

Subsequently, on August 1, the U.S. Commodity Futures Trading Commission (CFTC) officially launched its regulatory plan "Crypto Sprint" in coordination with Project Crypto. Four days later, on August 5, it further proposed to bring spot crypto assets into compliance trading on CFTC-registered designated contract markets (DCMs). This means that platforms such as Coinbase or on-chain derivatives protocols can obtain operational licenses through registration with a DCM.

SEC Corporate Finance Division Statement on Liquid Staking Activities - August 5

The SEC's Corporate Finance Division released a statement analyzing the liquid staking landscape, stating that liquid staking activities themselves do not involve securities transactions. Staking Receipt Tokens are not securities; their value merely represents ownership of the staked crypto assets rather than being based on third-party entrepreneurial or managerial efforts. The statement clarifies that liquid staking does not constitute an investment contract, providing clearer compliance space for DeFi staking services.

August 5 Executive Order Draft Against "Chokehold Action 2.0"

The order aims to address discrimination against cryptocurrency companies and conservative individuals, threatening fines against banks that cut off customer relationships for political reasons and imposing consent decrees or other disciplinary actions. The order also reportedly directs regulatory agencies to investigate whether any financial institutions have violated the Equal Credit Opportunity Act, antitrust laws, or consumer financial protection laws.

August 7: Trump Signs Executive Order on 401(k) Retirement Investment

The order aims to allow 401(k) retirement funds to invest in alternative assets such as private equity, real estate, cryptocurrency, and more. This move will be a significant breakthrough for the industry seeking to tap into the approximately $12.5 trillion retirement fund market.

The Super App Era of Everything on the Blockchain: Which Crypto Tracks Can Benefit from Policy Dividends

The United States has now established a compliance framework for the cryptocurrency field. The Trump administration has solidified the position of "stablecoins" with the Stablecoin Act and the Anti-Central Bank Digital Currency Act, which first, pegs stablecoins to U.S. Treasury bonds and second, connects to global liquidity. Building on this foundation, stablecoins can be seamlessly extended to various cryptocurrency fields. The CLARITY Act, also known as the Genius Act, establishes the jurisdiction of the SEC and CFTC. From July 29 to August 5, within just one week, four statements related to the blockchain, ranging from opening BTC and ETH ETFs for "physical redemption" to liquidity staking certificates, were all aimed at first connecting the channels of "old money" to the blockchain and then expanding more financial systems on-chain through "DeFi returns." The two executive orders issued in the last two days have effectively injected money from "banks" and "retirement funds" into the cryptocurrency field. This series of moves has brought about the first true "policy bull run" in the history of cryptocurrency.

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

When discussing the most popular candidates for the Super App this year, undoubtedly the non-traditional brokerage Robinhood and the earliest "compliant" trading platform Coinbase are the two leaders. While Robinhood acquired Bitstamp this year, launched tokenized equities, and partnered with Aave to bring them on-chain (conducting both on-platform and on-chain transactions), Coinbase further integrated its Base Chain ecosystem and Coinbase Exchange channels, and upgraded its Base Wallet to integrate it into a unified App for social and off-chain application layer services. However, in the context of the Super App, various fields' RWA is the real breakthrough.

As policy encourages the on-chainization of traditional assets, Ethereum bonds, stock on-chainization, and short-term government bond tokenization will gradually enter the compliance path. According to RWA.xyz's data, the global RWA market has grown from around $5 billion in 2022 to around $24 billion as of June 2025. However, rather than calling this RWA, it is better to call them Fintech, all aimed at making financial services more efficient institutionally and technologically. From the emergence of Real Estate Investment Trusts (REIT) in the 1960s, E-gold, to the later emergence of ETFs, after numerous experiments with decentralized ledgers, colored BTC, algorithmic stablecoins, failures, and successes, they have become RWA.

And now, with recognition from the policy system, becoming the most reliable endorsement, its market will also be huge. The Boston Consulting Group believes that by 2030, 10% of global GDP (about $16 trillion) can be tokenized, and Standard Chartered Bank estimates that tokenized assets will reach $30 trillion by 2034. Tokenization, through cost reduction, smoother underwriting, and increased liquidity, has opened an exciting new door for institutional companies. It also helps improve returns for investors willing to take on more risk.

The Essence of Stablecoins, On-chain Government Bonds

When discussing RWA in cryptocurrency, dollar-denominated assets, especially the US dollar and US Treasury bonds, always take center stage. This is the result of nearly 80 years of economic history, as the 1944 Bretton Woods system development has made the US dollar the pillar of the global economy. Global central banks hold most of their reserves in dollar-denominated assets, with about 58% of the world's official foreign exchange reserves held in dollars, with most of it invested in US Treasury bonds. The US Treasury bond market is the world's largest bond market, with around $28.8 trillion in outstanding bonds and unrivaled liquidity. Foreign governments and investors alone hold about $9 trillion of this debt.

Historically, there has been almost no asset that matches the depth, stability, and credit quality of US Treasury bonds. High-quality government bonds are the cornerstone of institutional investment portfolios, used to safely store capital and as collateral for other investments. The crypto world leverages these same fundamentals, and after stablecoins became the crypto's largest "gateway," their relationship is deeper than ever.

While, on one hand, cryptocurrency has not fulfilled Satoshi Nakamoto's vision of "establishing an alternative to the US dollar system," it has instead become a more efficient infrastructure for a dollar-based financial system. This has actually become a necessary condition for the US government to "fully accept its existence," and in fact, the US government may need it more than ever.

With the recent inclusion of countries such as Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia, the GDP sum of the BRICS group is expected to reach $29.8 trillion in 2024, surpassing the $29.2 trillion GDP of the United States. By GDP measurement, the United States is no longer the world's largest economic group. Over the past two decades, the BRICS economies have shown significantly faster growth rates compared to the G7.

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

Stablecoins closely tied to it have a unique position in the global financial landscape. They act as the most liquid, efficient, and user-friendly wrappers for short-term U.S. Treasury bonds, effectively addressing two barriers associated with de-dollarization: maintaining the global dominance of the U.S. dollar in transactions while ensuring sustained demand for U.S. Treasury bonds.

As of December 31, 2024, data on U.S. dollar holders shows that stablecoin holders have reached 15%-30% of the total traditional U.S. dollars developed over centuries in a span of 5 years, source: Ark Investment

U.S. dollar-pegged stablecoins like USDC and USDT provide traders with a stable trading currency and are backed by the same bank deposits and short-term U.S. government bonds relied on by traditional institutions. However, the bond income of these bond-stablecoins is not owned by the holding user, but there are more on-chain financial products that incorporate the concept of U.S. Treasury bonds. There are currently two main methods to build tokenized Treasury bonds on-chain: yield-generating mechanism and rebasing mechanism.

For example, interest-bearing tokens like Ondo's USDY and Circle's USYC increase asset valuation through various mechanisms to accumulate base income. In this model, due to the cumulative yield, USDY's price after six months will be higher than today. In contrast, rebasing tokens like BlackRock's BUIDL and Franklin Dampston's BENJI or Ondo's OUSG maintain dollar parity by distributing income through new issued tokens at predefined intervals.

Whether it's "yield-bearing stablecoins" or "U.S. bond tokenization," just like the adoption of portfolio in TradeFi, on-chain financial products utilizing on-chain U.S. Treasury bonds as a stable income component have become an alternative to high-risk DeFi, allowing crypto investors to achieve a stable 4-5% annual return with minimal risk.

Further Reading: "The Stablecoin Bill in Hand, and the Restless Wall Street Bankers"

The Easiest Field to Make Money In: On-Chain Credit

In the traditional lending industry, one of the most core profit areas of the financial system. According to research by Magistral Consulting, the global credit market is projected to reach $11.3 trillion in 2024 and is expected to reach $12.2 trillion in 2025. In contrast, the entire crypto lending market is still less than $30 billion, but the average yield is around 9-10%, much higher than traditional finance. If regulations no longer impose limits, a huge growth space will be unleashed.

In March 2023, a research team led by Giulio Cornelli from the University of Zurich published a paper on the importance of large tech company loans in the Bank and Finance Journal. The research shows that a clear FinTech regulatory framework can double the growth of new lending activities (some studies show that FinTech lending volume grows by 103% with clear regulation). The same goes for crypto lending: clear policies attract capital.

Lending Market Size, Source: Magistral Consulting

Therefore, in an era where more and more assets are being tokenized in the RWA field, one of the biggest beneficiaries post-compliance may be the on-chain lending industry. Currently, in the Crypto space, as it lacks the "government credit score" system that traditional finance has, it can only focus on "collateralized assets" and use DeFi to enter the secondary credit market to diversify risks. Currently, private credit-like assets account for about 60% of on-chain RWAs, approximately $14 billion.

Behind this wave is deep involvement of traditional institutions, with the most prominent being Figure, which is recently in discussion for going public. Figure has launched Provenance, a Cosmos ecosystem designed specifically for asset securitization and loan finance scenarios. As of August 10, 2025, it has already custodied around $11 billion in private credit assets, representing 75% of this track. Its founder is Mike Cagney, former SoFi founder, and as a "serial entrepreneur" in the lending field, this has also made him adept in blockchain lending, with the platform connecting the entire chain of loan origination, tokenization, and secondary trading.

In second place is Tradable, which, through its collaboration with Janus Henderson, a $330 billion asset management company, tokenized $1.7 billion in private credit on Zksync at the beginning of the year (making Zksync the second-largest "lending chain"). The third place goes to the "world computer" Ethereum, but its market share in this area is only 1/10 of Provenance.

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

Further Reading: "From Sex Scandal to RWA's First Stock, Figure's "American Hustle""

"Bitcoin Mortgage, a New $66 Trillion Blue Ocean"

DeFi-native platforms are also entering the RWA lending market. For example, Maple Finance has facilitated over $3.3 billion in loans, with approximately $777 million in active loans, some targeting real-world accounts receivable. MakerDAO has also started to onboard real-world assets such as national debt and commercial loans. Platforms like Goldfinch and TrueFi have also made early moves in this space.

All of this was previously suppressed under regulatory hostility, but now a "policy thaw" may completely activate this sector.

For example, Apollo has launched its flagship credit fund ACRED as a tokenized fund, allowing investors to mint sACRED tokens representing their shares through Securitize, which are then used on DeFi platforms (such as Morpho on Polygon) for lending arbitrage operations. Through the RedStone price oracle and Gauntlet risk engine, sACRED is collateralized to lend stablecoins, and then leveraged to buy back ACRED, taking a 5–11% base yield and levering it up to 16% APY. This innovation combines institutional credit funds with DeFi leverage.

sACRED Rehypothecation Architecture, Source: Redstone

In the longer term, 401(k) reform will indirectly benefit on-chain credit. Jake Ostrovskis, an OTC trader at Wintermute, expressed that the impact of this move should not be underestimated. "Just a 2% allocation to Bitcoin and Ethereum is equivalent to 1.5 times the cumulative ETF inflows to date, and a 3% allocation would more than double the entire market's flow of funds. The key is that these buyers are mostly price-insensitive, focusing on meeting allocation benchmarks rather than tactical trading." The income requirements of traditional retirement funds are expected to drive investment interest in stable, high-yield DeFi products. For example, tokenized assets based on real estate debt, small business loans, and private credit pools, if properly structured for compliance, could become a new option for pension funds.

Top 10 Current Market Share of On-Chain Lending Projects, Source: RWAxyz

Under clear regulations, such institutional-grade "DeFi Credit Funds" may rapidly proliferate. After all, most major institutions (Apollo, BlackRock, JPMorgan) already view tokenization as a key tool to enhance market liquidity and yield. Beyond 2025, as more assets (such as real estate, trade finance, and even mortgage loans) are tokenized on-chain, on-chain credit is poised to become a market worth trillions of dollars in scale.

Transforming 5*6.5 Hours of "American Value" into "On-Chain US Stocks" for the World to Trade 7*24

The U.S. stock market is one of the world's largest capital markets. By the mid-2025, the total market capitalization of the U.S. stock market is around 50–55 trillion USD, accounting for 40%–45% of the global stock market value. However, such a massive "American Value" has long been tradable only within a window of approximately 6.5 hours a day for 5 days a week, with clear regional and time limitations. Now, this landscape is being rewritten as on-chain U.S. stocks enable global investors to participate in the U.S. stock market 7x24 without interruption.

On-chain U.S. stocks refer to digitizing the stocks of U.S.-listed companies into tokens on the blockchain, with their price anchored to real stocks and backed by actual stocks or derivatives. The greatest advantage of tokenized stocks lies in breaking free from limited trading hours: traditional U.S. stock exchanges are open for only about 6.5 hours each working day, whereas blockchain-based stock tokens can trade continuously 24/7. Currently, the tokenization of U.S. stocks is mainly achieved through three approaches: third-party compliant issuance + multi-platform access model, licensed broker-dealer proprietary issuance + closed-loop on-chain trading, and Contract for Difference (CFD) model.

Further Reading: "From Robinhood to xStocks, How is Stock Tokenization Achieved?"

Currently, there have been various projects related to stock tokenization in the market, from Republic's launch of the "Pre IPO" mirror coin, to Ventuals on Hyperliquid that allows both long and short positions on "Pre IPO" stocks, to Robinhood that triggered tremors in both the TradeFi and crypto communities, xStocks with collaborations from multiple institutions, MyStonk that enables stock dividends, and StableStock that is about to launch a DeFi integration of brokerage + on-chain tokens dual-track gameplay.

This trend is driven by the rapid clarification of the regulatory environment and the entry of traditional giants. The Nasdaq Stock Market has proposed creating a digital asset version of an ATS (Alternative Trading System), allowing tokenized securities and commodity-type tokens to be listed for trading together to enhance market liquidity and efficiency. SEC Commissioner Paul Atkins has likened the on-chain transformation of traditional securities to the digitization of the music medium: just as digital music disrupted the music industry, the on-chain issuance, custody, and trading of securities are expected to bring about new models, reshaping all aspects of the capital market. However, the field is still in its early stages. Compared to other RWA sectors with billions of dollars in value, the space for growth in the stock tokenization race seems larger. The overall market value of on-chain stocks is currently less than $400 million, and the monthly trading volume is only around $300 million.

The main practical issues that this trend needs to address include the incomplete establishment of compliance pathways, complex regulatory requirements for institutional entry, and extensive friction in the deposit process. However, for most users, the primary issue to solve is the lack of liquidity. Tech investor Zheng Di stated that due to the high OTC costs, stock traders and on-chain players are two different groups of people: "If you deposit through OTC, you have to bear a cost of thousands of dollars. If it's through a licensed exchange like Coinbase in Singapore, you also need to pay about 1% in fees and 9% in consumption tax. Therefore, the money in the crypto circle and the money in traditional brokerage accounts are two separate systems, which basically do not interoperate, like fighting on two battlefields."

Because of this, on-chain stocks currently seem more like educators of a group of Degen players to accept basic stock knowledge on one side and on the other side, they are shoutouts to those accustomed to traditional brokerage firms, claiming to be the "24/7 business" stackers. ZiXI, the founder of StableStock, segmented users who trade on-chain stocks into three categories and analyzed why on-chain stocks are "needed" in the scenarios of these users in an interview on Wechat without Borders.

Newbie User: Mainly distributed in countries with strict foreign exchange controls such as China, Indonesia, Vietnam, the Philippines, Nigeria, etc. They hold stablecoins but due to various restrictions, they cannot open a bank account overseas and cannot smoothly buy traditional US stocks.

Professional User: They have both stablecoins and overseas bank accounts, but due to the low leverage ratio of traditional brokers, such as Tiger's leverage ratio being only 2.5 times. However, on-chain, by setting a higher LTV (loan-to-value ratio), they can achieve high leverage, for example, with an LTV of 90%, they can achieve 9 times leverage trading.

High Net Worth User: They hold US stock assets long-term, and in a traditional brokerage account, they may earn interest, dividends, or enjoy the benefits of stock price appreciation through securities lending. After their stocks are tokenized, they can participate in LP, lending, and even cross-chain operations on the blockchain.

From Robinhood's product launch to Coinbase submitting a pilot application to the SEC to become one of the first licensed institutions to offer "on-chain US stocks" services in the US. In addition, with the SEC Corporate Finance Division's favorable statement on liquidity collateral, it can be foreseen that as the policy-driven bull market progresses, on-chain US stocks will gradually integrate into the DeFi ecosystem, thereby constructing relatively deep liquidity pools. The once limited US value confined to 5x7-hour trading is accelerating its transformation into a global on-chain equity market where investors can participate across time zones anytime. This not only greatly expands the asset map of cryptocurrency investors but also introduces round-the-clock liquidity to the traditional stock market, marking Wall Street's step into the "Super-App era" of the on-chain capital market.

The Legitimization of Collateral Assets, the Rise of DeFi

In this regulatory favorable environment, one of the biggest winners is undoubtedly DeFi derivative protocols. The SEC's legitimization of liquidity collateral has paved the way for them, making it one of the most relevant benefits for "Crypto Native" players. Previously, the SEC held a hostile attitude toward centralized collateral services, forcing exchanges to delist collateral services and triggering concerns about whether Lido's stETH and Rocket Pool's rETH are unregistered securities. However, in August 2025, the SEC's Corporate Finance Division issued a statement confirming that "as long as the underlying assets are not securities, then LST is also not a security," this clear policy signal was hailed by the industry as a watershed moment for the legitimization of collateral.

This not only benefits collateral itself but also activates a whole set of DeFi ecosystems based on collateral: from LST collateralized borrowing, yield aggregation, re-collateralization mechanisms, to yield derivatives built on staking, and more. More importantly, US regulatory clarity implies that institutions can legally participate in collateral and related product configurations. The current ETH locked in liquid staking is approximately 14.4 million, and the growth is accelerating. According to Defillama's data, from April to August 2025, the LST locked TVL has soared from $20 billion to $61 billion, returning to an all-time high.

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

And among these DeFi protocols, at some point, it seems that a consensus has been reached, and they have begun deep collaboration with each other. Not only have they connected their institutional resources to each other, but they have also collaborated closely on the yield structure, gradually forming a systematic "yield flywheel."

For example, the new collaboration between dEthena and Aave allows users to gain leverage exposure to the sUSDe interest rate while maintaining better overall liquidity by holding USDe (with no cooling-off period restrictions). A week after its launch, the Liquid Leverage product has attracted over $1.5 billion in funds. Pendle has separated yield-bearing assets into Principal Tokens (PT) and Yield Tokens (YT), creating a "yield trading market." Users can purchase YT with a small amount of funds to seek high returns, while PT locks in a fixed return, 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. In addition, Pendle's new "Project Boros," which has just partnered with Ethena, expands the trading market to the perpetual contract Funding Rate, allowing institutions to hedge Binance contract rate risks on-chain.

DeFi player JaceHoiX stated, "Ethena, Pendle, and Aave are forming the iron triangle of the TVL bubble," and now users can use 1 USDT to cyclically lend 10x by minting USDe -> minting PT -> depositing PT -> borrowing USDT -> minting USDe, turning 1 USDT into a $10 deposit. At the same time, this $10 deposit is included in the TVL of all three protocols, resulting in $30 in deposit across these three protocols for every $1. Meanwhile, many institutions have already entered the field through various means in recent years, such as JP Morgan launching the Kinexys lending platform, as well as BlackRock, Cantor Fitzgerald, Franklin Templeton, and others. Clarity in regulations will facilitate the integration of DeFi protocols with TradFi, ultimately turning the narrative of turning $1 into $30 into a longer-lasting version of the "village selling apples."

American Public Blockchains and World Computer

American domestic public blockchain projects are currently experiencing a policy tailwind. The CLARITY Act passed in July introduced the standard of "mature blockchain systems," allowing encryption projects to transition from securities to digital commodity assets once the network has achieved decentralization maturity. This means that public blockchains with a high degree of decentralization and teams following a compliant path may have the opportunity to obtain commodity attributes for their tokens, allowing them to be regulated by the Commodity Futures Trading Commission (CFTC) rather than the SEC.

KOL @Rocky_Bitcoin believes that the advantage of the American financial center is beginning to shift towards the crypto field. He stated, "The clear division of labor between the CFTC and the SEC shows that the United States aims to not only have high trading volume in the next bull market phase but also become a project incubator." This is highly favorable for American domestic public blockchains such as Solana, Base, Sui, and Sei. If these chains can natively adapt to compliance logic, they may become the primary infrastructure for the next USDC and ETF."

For example, asset management giant VanEck has applied for a Solana spot ETF, stating that SOL is functionally similar to Bitcoin and Ethereum and should therefore be considered a commodity. In February 2025, Coinbase also launched CFTC-regulated Solana futures contracts, accelerating institutional involvement in SOL and paving the way for the future introduction of a SOL spot ETF. These series of actions indicate that under the new regulatory approach, certain "American public blockchains" are gaining a commodity-like status and legitimacy, becoming important bridges for traditional funds to migrate to public chains, allowing old-school institutions to confidently move their value onto the open blockchain.

Meanwhile, Ethereum, known as the "world computer" of the crypto world, has also significantly benefited from the policy shift, as the new regulations restrict "insider trading" and "quick coin issuance for cash-out," favoring mainstream cryptocurrencies with actual development and robust liquidity. As the most decentralized, developer-rich, and rarely interrupted public blockchain globally, Ethereum has long carried the vast majority of stablecoins' and DeFi applications' throughput.

Now that the American regulatory authorities have essentially acknowledged Ethereum's non-securities nature, in August 2025, the SEC released a statement clarifying that as long as the underlying assets like ETH are not securities, the anchored flow-based collateral certificates are likewise not considered securities. Additionally, as the SEC had previously approved Bitcoin and Ether spot ETFs, this indirectly confirms Ethereum's position as a bulk commodity.

With regulatory endorsement, institutional investors can more boldly participate in the Ethereum ecosystem, whether issuing on-chain sovereign bonds, stocks, and other RWA assets, or using Ethereum as a clearing and settlement layer to connect with TradFi operations, which have become practical. It is foreseeable that while American public blockchains are competing to expand compliance, the "world computer" Ethereum remains the cornerstone 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 up a new pathway for deep integration with traditional finance.

Did Policy Really Bring About the Bull Market?

Whether it is the "Stablecoin Act" establishing the compliant status of USD-pegged assets or the blueprint of the on-chain capital market 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 enforcement details during the policy experimentation period will still directly determine the life and death of various tracks.

From RWA and on-chain credit to collateralized derivatives and on-chain equities, almost every track can find its place in the new framework. However, their true test may be whether they can maintain crypto-native efficiency and innovation while being compliant. Whether the global influence of the US capital market can truly integrate with the decentralization of blockchain will depend on the long-term game among regulatory agencies, traditional finance, and the crypto industry. The policy winds have shifted, and the key to how far this round of the "policy bull market" can go next lies in how to grasp the rhythm and control the risks.

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