Can the values of Crypto Assets survive in the wave of regulation?

Crypto Assets are not only a technological innovation but also a spiritual belief. When the regulatory system undergoes comprehensive reform, two distinctly different ideas emerge in the industry: on one hand, there is a profound reflection on the core values of Crypto Assets, while on the other hand, there is great anticipation for new application scenarios.

The author interviewed several experts who will speak at the "Consensus 2025" conference's civil regulatory forum, discussing how to protect the core values of the industry during regulatory reforms, as well as the innovative opportunities that may arise under the new regulatory framework. Below are the summarized viewpoints of the experts.

How to Safeguard the Core Values of Crypto Assets Amid Regulatory Reforms?

Kayvan: Focus on technological advantages, reconstruct the discussion framework

Personal freedom and autonomy are core values in the encryption field. Privacy protection and decentralization are the foundations for achieving this autonomy. To ensure these values are respected, we need to reconstruct the discussion framework: focusing on proving that new technologies can not only achieve the fundamental goals of existing laws "in different ways", but also "in better ways".

For example, a large number of financial regulatory rules aim to prevent the abuse of power by asset custodians. The problem can fundamentally be solved by completely eliminating the role of "human intermediaries" through technology. We should discuss around the core proposition of "how to use technological innovation to provide better solutions for the existing governance goals of the law."

Connor: Promote decentralization and empower user control.

Blockchain technology can provide users with unprecedented transparency, reliability, and security. Under reasonable regulation, blockchain projects will continue to promote the decentralization process, allowing users to truly have control over their financial assets and digital property. Decentralized blockchain networks will also support applications in various fields, such as data sovereignty social platforms, community governance platforms, and more.

We believe that "control" is the most effective entry point for defining decentralization at a legal level. Through the "control test," the information asymmetry issues caused by the centralization of token control can be significantly mitigated, thereby securing regulatory exemptions or downgrades under the securities law framework for projects.

Lewis: Protecting innovative communities, respecting grassroots spirit.

The essence of the crypto ecosystem is a tool system that grows from the bottom up, condensing the wisdom and creativity of countless individuals, rather than being a top-down plan from tech giants. This grassroots nature is precisely what makes the spirit of encryption so moving. We must be clear-eyed in recognizing and protecting this characteristic.

Michelle: Deeply understand the technology, balance regulatory goals

Decentralization is the most precious core value. The key to ensuring that the principles of decentralization are respected lies in the fact that legislators and regulators must have a deep understanding of the underlying technological architecture. Only in this way can a dual objective be achieved when formulating rules: to protect consumers and to effectively prevent financial crimes.

David: Drawing on historical experience, balancing innovation and regulation.

Although encryption technology is innovative, its paradigm of "innovation needs to be balanced with reasonable regulation" has historical precedents. For example, the development of the aviation industry is a good reference. Regulators can certainly maintain an open attitude towards new business models while formulating targeted protective mechanisms to achieve a balance in preventing various risks.

Is regulatory reform opening up valuable new business models?

Kayvan: Empower individuals and promote ecological participation

A reasonable regulatory framework has far-reaching significance for business models that rely on community participation and network effects. Effective regulation can empower individuals through the democratization of capital access and the popularization of ecological participation, promoting the mainstream group's involvement in ecological construction and sharing the network effect dividends of the community in which they reside.

Connor: A new field is poised to take off

As relevant legislation gradually outlines the regulatory framework, mainstream institutions' interest in blockchain technology has significantly increased. The prospects for new projects in areas such as decentralized artificial intelligence, digital identity protocols, and social media 3.0 are optimistic. At the same time, there is hope for new architectures like DAOs to gain legal status recognition, unleashing the full potential of organizational innovation.

Lewis: Innovation never stops.

The ideal regulation should be like a spring breeze and rain, promoting innovation while also responding sensitively to new business models. The mission of innovators is to continuously create, while the role of regulators should be to protect and adapt, rather than overstep their bounds.

Michelle: Regulatory technology welcomes opportunities

The encryption platform inherently possesses compliance genes, such as blockchain technology that guarantees traceable transaction records and smart contracts that enable real-time compliance checks. These technological characteristics endow crypto enterprises with a compliance advantage over traditional finance: while providing more accurate information to regulators, they significantly reduce compliance costs.

David: The potential for stablecoins and asset tokenization is immense.

The wave of stablecoins and the tokenization of real assets contains enormous potential. It is crucial to establish the "Golden Triangle" regulatory principles: minimizing redemption risk, blocking illegal fund flows, and ensuring cross-chain interoperability. Only in this way can stablecoins truly become the financial primitives of the digital economy era.