Encryption regulatory-friendly policies promote Ethereum ecosystem prosperity

After the Trump administration took office, there was a clear shift in cryptocurrency regulatory policy, becoming generally more friendly. The new SEC Chairman John Atkins proposed to simplify the regulatory process for crypto assets, establish standards for token classification, and explore innovations such as on-chain securities exchanges. The two bills, the CLARITY Act and the Genius Act, will establish a regulatory framework for crypto assets and stablecoins. The SEC's exemption for Ethereum staking activities has also paved the way for ETF staking yields.

These policies are expected to attract a large amount of traditional capital into the encryption market, especially in the form of stablecoins. As the most important infrastructure for on-chain finance, Ethereum will become the biggest beneficiary:

1. Ethereum accounts for about 50% of the stablecoin circulation and dominates the DeFi TVL.

2. The new stablecoin mainly flows in four directions: on-chain DeFi, RWA market, payment sector, and some speculative markets, with Ethereum occupying a dominant position in the first three areas.

3. UNI, AAVE and other Ethereum ecosystem DeFi blue-chip projects are expected to usher in a new round of prosperity.

4. Institutional investors such as BlackRock continue to buy ETH ETFs, indicating a bullish trend.

5. The options market is bullish, with a large number of shorts facing squeeze risks.

In summary, favorable regulatory policies, well-established on-chain financial infrastructure, and continuous buying by institutional investors will jointly promote the further prosperity of the Ethereum ecosystem, with ETH expected to break through 14,000 USD in the medium to long term.