The U.S. Securities and Exchange Commission (SEC) recently announced a landmark decision, marking a significant shift in U.S. financial regulation. SEC Chairman Gensler is actively promoting "encryption projects," which means that traditional regulatory rules will gradually be replaced by new rules adapted to the Blockchain era. This move has received support from the White House and Trump, reflecting a regulatory approach that balances innovation and Compliance, paving the way for the accelerated integration of encrypted assets into the mainstream financial system.

The SEC's push for the "on-chain" reform of the financial market mainly includes the following five directions:

First, the SEC will focus on eliminating regulatory uncertainty. They plan to establish a regulatory framework specifically for the issuance of cryptocurrency assets in the United States, with clear classification standards. For projects that meet the nature of securities, the SEC will set up dedicated mechanisms and look forward to seeing the emergence of new types of cryptocurrency asset securities, such as "tokenized stocks".

Secondly, the SEC will support diversified custody and trading platforms. This includes supporting the use of self-custody wallets while reforming relevant rules to develop more applicable regulatory measures for registered institutions to custody encryption assets.

Thirdly, the SEC will promote the emergence of "super applications." They will work with other regulatory agencies to establish an effective licensing structure that allows non-securities crypto assets and crypto asset securities to trade concurrently on SEC-regulated platforms. At the same time, they are also exploring the possibility of non-securities crypto assets trading on unregistered trading venues.

Fourth, the SEC will promote the "on-chain" process of the U.S. financial markets. They will support the operation of decentralized financial systems, revise relevant rules to support on-chain trading of tokenized securities, and encourage the development of purely software-based financial service systems.

Finally, the SEC will change the traditional regulatory logic and provide "innovation exemptions." This means they will allow some new business models that do not fully comply with current rules to enter the market, provided that these new business models must adhere to the core principles of U.S. securities law.

These series of reforms reflect the SEC's positive attitude towards encryption assets and Blockchain technology, and also show that U.S. regulatory agencies are working to adapt to the rapidly changing fintech environment. This will undoubtedly bring new development opportunities to the encryption asset market, while also providing strong support for the digital transformation of traditional financial markets. However, finding a balance between encouraging innovation and protecting investor interests will remain an important challenge for the SEC.