XRP being locked at a 1250% risk weight under Basel III protocol actually reflects not only issues specific to this asset but also the broader challenges faced by the entire crypto industry as it integrates with traditional finance.

In simple terms, the initial strict regulation of crypto assets by authorities can be understood. During the early development of emerging tools, with wild price fluctuations, money laundering risks, and incomplete rules, it is normal for banking institutions to proceed with caution. The punitive risk weight of 1250% essentially acts as a "firewall"—raising costs to prevent traditional financial institutions from overparticipating and to guard against potential financial storms.

But now, the problem arises. With the development of crypto assets over the past few years, some projects are no longer what they used to be. For example, XRP, after years of refinement, has a relatively mature technical system and a gradually developed ecosystem. It has accumulated numerous application cases in real scenarios like cross-border payments and supply chain finance, and its controllability has significantly improved.

However, the regulatory framework remains the same old "one size fits all." It’s like having a driver’s license, driving safely for five years, and still being charged the beginner’s rate by the insurance company—clearly unreasonable. The integration of crypto assets with traditional finance is an inevitable trend, but if rules do not keep pace with the actual industry development, they may become a barrier to innovation. Regulation needs to be updated, but such updates require time and data support.