XRP is locked behind the Basel III regulation with a 1250% risk weight, which actually reflects not only issues with this particular asset but also the common challenges faced by the entire crypto industry as it integrates with traditional finance.

Simply put, regulatory authorities initially imposed strict controls on crypto assets, and the logic behind this can be understood. In the early stages of developing emerging tools, prices fluctuate wildly, money laundering risks exist, and regulations are not yet perfect, so it is normal for banking institutions to be cautious. The punitive risk weight of 1250% essentially acts as a "firewall"—raising costs to prevent traditional financial institutions from over-participating 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 complete technical system and a gradually mature ecosystem. It has accumulated many 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 old "one size fits all" approach. It’s like you passed your driving test and have been driving safely for five years, but the insurance company still charges you the beginner rate—that’s clearly unreasonable. The integration of crypto assets with traditional finance is an inevitable trend, but if regulations cannot keep up with the actual industry development, they may become a barrier to innovation. Regulation needs to be updated, but updates require time and data support.