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The chairman of the Securities and Exchange Commission (SEC) recently announced a major initiative called "Project Crypto," aimed at reshaping the United States' regulatory approach to crypto assets. This move is intended to drive the financial markets towards the adoption of blockchain technology, with the grand goal of establishing the U.S. government as the global center for crypto.
The plan includes several key aspects:
First, the SEC will redefine the classification standards for crypto assets, categorizing them into digital collectibles, commodities, or stablecoins, among others, to address the long-standing legal positioning issues. This initiative is expected to attract more traditional financial institutions and technology companies to participate in the crypto space.
Secondly, the plan supports individuals in independently managing their crypto assets and relaxes relevant restrictions on institutions, providing investors with more choices.
Thirdly, regulators plan to simplify the licensing application process by introducing a comprehensive license that covers various Crypto Assets services, promoting the development of one-stop financial platforms.
Fourth, the plan recognizes the legitimate status of decentralized financial systems and modifies existing market rules to allow tokenized securities to be traded in a non-intermediated environment.
Finally, to encourage innovation, a special exemption mechanism is planned to be introduced, allowing emerging business models to quickly enter the market provided they meet basic conditions.
This plan is seen as the third major transformation of the U.S. financial infrastructure following paper-based and electronic systems. It is not just about transferring stocks onto the Blockchain; it represents the possibility of digitizing various assets and enabling global 24-hour trading with government support. This shift could reshape the global financial landscape, providing investors with more options while also potentially triggering a reassessment of various assets.
However, this ambitious plan also faces numerous challenges, including technical implementation, regulatory coordination, and reactions from global financial markets. As "Project Crypto" progresses, its profound impact on the global financial system deserves our continued attention.