Written by Luke, Mars Finance
Prologue: Clearing out policy remnants from the past
On August 22, 2025, more than seven months had passed since the new administration took office. Since January of this year, Washington's friendly stance toward the crypto industry has become a clear policy axis. However, despite this broad direction, the industry's development path is still littered with obstacles left by the previous administration. The "enforcement-style regulation" strategy implemented by former SEC Chairman Gary Gensler before his departure in January 2025 has become like a reef left behind by the receding tide. While its impact has diminished, numerous outstanding lawsuits and unclear regulatory definitions continue to constrain the industry's potential.
The core logic of the SEC under Gary Gensler was to treat the vast majority of digital assets as securities and to define their boundaries through litigation rather than legislation. The legacy of this strategy is evident: industry leaders like Coinbase are still battling legal challenges, the controversial Staff Accounting Bulletin No. 121 (SAB 121) restricts banks from providing large-scale crypto custody services, and developers and project owners still lack a clear and predictable "safe harbor" for defining what constitutes a security.
Therefore, the challenge for the crypto industry in 2025 is no longer facing hostile regulators, but rather collaborating with a friendly government to efficiently "dismantle the old scaffolding" and quickly establish a clear and solid legal framework that can support development over the next decade. The entire industry is awaiting a landmark event, a signal that will accelerate the transition from "establishing a friendly posture" to "establishing comprehensive rules."
The Accelerating Moment: Concerted Action in Washington
This signal was clearly conveyed on August 22nd. This wasn't a sudden policy shift, but rather a long-awaited coordinated effort to formalize and systematize friendly policies. The two major US financial regulators, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), took coordinated action, officially launching the "major battle" to establish clear rules for the US crypto industry.
CFTC Acting Chairwoman Caroline D. Pham announced the launch of a new round of the "Crypto Sprint Initiative." Its core goal is to rapidly implement the recommendations of the President's Digital Asset Markets Task Force report, establishing the promotion of spot trading of digital commodities at the federal level as a "top priority." This signals the regulator's transition from policy announcements to efficient implementation and implementation.
The SEC also officially launched its accompanying grand initiative, "Project Crypto." This project aims to collaborate with the CFTC to design a regulatory framework for the digital asset market that both protects investors and maximizes innovation. Both agencies simultaneously voiced their support, pointing to the Presidential Task Force report titled "Strengthening American Leadership in Digital Fintech," indicating that all their actions will be guided by a unified national strategic framework.
This coordinated action is significant: it means regulators are no longer working independently, but rather as a coalition to address historical issues and build a shared future. It also marks the official transition of U.S. crypto regulation from "correcting the chaos" to "establishing rules and regulations."
The two heroes of the new policy: the blueprint of "sprint" and "planning"
The "Crypto Sprint Plan" and "Project Crypto" are like two complementary forces, together forming the core of this regulatory construction.
The CFTC's "Crypto Sprint" initiative is a pragmatic "engineering effort" focused on paving the way for the most critical challenges currently facing the industry. Its core mission is to establish a federally recognized, compliant spot market for digital commodities like Bitcoin and Ethereum. This is the cornerstone of a thriving industry. By proactively inviting public feedback on specific trading rules such as leverage and margin, the CFTC demonstrates its openness and efficiency, aiming to rapidly pave a highway for digital commodities to enter mainstream finance.
The SEC's "Project Crypto" is a far-sighted "chief architect," responsible for charting the course for the future of digital finance. Its vision is exceptionally forward-thinking: first, it reforms outdated custody rules, paving the way for the repeal of SAB 121, allowing traditional banks to safely and compliantly hold digital assets on a large scale. Second, it establishes an "innovation safe harbor" to allow startups to issue tokens under certain disclosure requirements, providing valuable early-stage development space for innovation. Its most revolutionary concept is promoting the "super-app" model, allowing a single compliant entity to simultaneously offer trading services for both digital commodities (regulated by the CFTC) and digital securities (regulated by the SEC), completely dismantling artificial barriers to entry.
One is responsible for quickly "clearing the way," while the other is responsible for the long-term "blueprint." Each performs its own duties while working closely together to transform the current administration's pro-encryption stance into an executable and predictable action plan.
Wall Street's "Beachhead Landing"
Once a clear regulatory framework begins to emerge, Wall Street capital will be the first to sense opportunity. For these financial giants, this coordinated action signals a full-scale entry into the digital asset market. The friendly signals received over the past seven months have already spurred them on, and now the concrete regulatory blueprint allows them to confidently and boldly deploy their forces.
A flood of institutional capital: The CFTC's clear oversight of the spot market and the SEC's anticipated reforms to custody rules mean the final regulatory barrier to deep-pocketed capital from pension funds, sovereign wealth funds, and other institutions entering the market is being removed. Capital inflows will no longer be a trickle but a potential torrent.
Financial Infrastructure Upgrade: US-based exchanges like Coinbase will see their positioning elevated. They will transition from market participants striving to prove their compliance to officially recognized core financial infrastructure with dual federal approval. Within the framework of "super apps," they are expected to become "super ports" connecting traditional finance with the digital world, welcoming massive orders from Wall Street.
The return of the innovation engine: The concept of an "Innovation Safe Harbor" holds immense appeal for global Web3 talent and projects. It sends a clear signal: the United States not only welcomes crypto companies but also offers them the best global innovation environment. A return of intellectual capital and a surge in local innovation are just around the corner.
As the regulatory framework gradually takes hold, the market's pricing power will accelerate its shift from early adopters to institutional investors. Wall Street's entry will bring unprecedented depth, liquidity, and stability to the market.
Final Chapter: Laying the foundation for leadership in the next decade
Of course, Rome wasn't built in a day. The full implementation of the new policy still requires resolving numerous technical details, and the debate over the classification of new tokens will continue within the new framework. However, this is no longer a struggle over direction, but rather a technical discussion within the construction process.
The most fundamental change is that the United States has made the crucial leap from a "friendly attitude" to "clear rules." The role of regulators has firmly shifted to that of market partners and builders. This joint effort by the CFTC and SEC not only cleans up policy remnants from a bygone era but also lays a solid foundation for the United States' dominance in digital finance for the next decade.
Globally, facing fierce competition from places like Hong Kong and Dubai, the United States has responded most forcefully with this coordinated, efficient, and visionary regulatory initiative. A US with clear rules will be the ultimate destination for capital, talent, and innovation in the global digital economy.
