Recently, the crypto world has been flooded with news about regulations—Japan’s financial regulators have upgraded the management level of crypto assets, and the US Congress has passed the CLARITY Act. For a time, many people started to worry: "Once regulated, there’s no more freedom," leading to panic selling.

But I’ve been in this industry for eight years and want to tell everyone a fact: don’t rush to be pessimistic. What seems like strict compliance is actually building a "moat" around mainstream coins like BTC and ETH. It can weed out truly junk projects, helping the entire industry stand firmer and go further.

Why do I say this? Let’s look at three core changes in global regulation.

**First is clearer positioning.** Previously, crypto assets were like unclaimed "black households"—neither traditional currency nor under securities law. Now, it’s different. Japan officially classifies crypto assets as "financial products," and the US explicitly categorizes BTC and ETH as "digital commodities." This may seem simple, but in fact, it provides a legal basis for investor protection. When something goes wrong, investors now know who to turn to for rights protection. Only then can mainstream capital truly be attracted.

**Second is clearer division of responsibilities.** In the US, the SEC and CFTC used to often hinder each other, forcing project teams to deal with both, risking being caught in the middle. Japan has also established a new independent department to handle this. Now, the boundaries of regulation are clear, project teams know what rules to follow and whom to report to, which actually reduces compliance costs. This is a real benefit for the industry’s long-term development.

**Third is clear standards.** From exchange risk control requirements to asset security standards, although details vary across countries, the overall direction is consistent. What does this standardization mean? It means that truly capable platforms and projects will survive, while those pretending to be something they’re not will eventually be eliminated.