The wind of change in US financial regulation is quietly shifting. The leadership of the U.S. Securities and Exchange Commission recently launched the "Project Crypto" initiative, which is not just a simple policy adjustment but a redefinition of the entire crypto asset regulatory framework—aimed at making the US a global blockchain financial hub.

**A "180-degree turn" in regulatory thinking**

In the past few years, whether crypto assets are considered securities has always been a hanging question for investors and developers. How does the SEC judge this? Mainly relying on the old "Howey Test," resulting in vague standards and enforcement that often leaves people confused. The previous leadership regarded most crypto assets as securities, repeatedly suing exchanges and NFT platforms, which put the entire industry under immense pressure.

Now, the approach has completely reversed. The new regulatory framework explicitly states that most crypto assets are not securities. Breaking down by economic attributes—digital collectibles, digital commodities, stablecoins, etc.—each has its own rules, no longer a one-size-fits-all.

**How does "Innovation Exemption" work?**

The most interesting part is coming. Starting from January 2026, qualifying DeFi protocols, DAOs, and stablecoin issuers will have the opportunity to enter the "Innovation Exemption" pathway. What does this mean? Within 12 to 24 months, you won’t need to follow the traditional complex registration process for securities, but the condition is to establish strict identity verification and compliance infrastructure yourself.

In simple terms, regulatory authorities are providing room for innovation, but the bottom line is that KYC and risk control cannot be relaxed. This approach is much more realistic than the previous "full blockade"—it recognizes the industry’s need for development space while maintaining risk management.