The two major US financial regulators, SEC and CFTC, have rarely teamed up, and this time it's for real. In the past, they competed over jurisdiction and operated independently. Now, the tide has turned—SEC is pushing a "Token Classification System," while CFTC has launched a "Crypto Sprint" plan.

The core of the new policy can be summarized in a few words: regulatory friendliness. Both agencies have jointly stated that spot crypto asset trading on exchanges registered under their jurisdiction is completely legal. CFTC has even initiated a pilot program allowing traders to use Bitcoin and Ethereum as margin for futures and swap contracts. For institutions looking to enter the market, this is undoubtedly a reassuring sign.

But reality isn't that simple. Once the regulatory framework is established, who will be targeted? It will definitely be those tokens with ambiguous classifications. Well-established "first-tier assets" like Bitcoin and Ethereum will become increasingly smooth sailing, boosting institutional confidence to follow suit. Conversely, many altcoins will face much tougher times. The coordination between SEC and CFTC gives them greater power to define projects, and tokens that are unclear whether they are commodities or securities will have little room to survive.

Looking at the current market changes, it's clear: institutional funds are pouring into Bitcoin, while liquidity for many smaller coins has already dried up. As regulations become clearer, this polarization will only accelerate.

For ordinary investors, the strategy should be straightforward. First, focus your core holdings on Bitcoin and Ethereum—don't expect to turn things around with altcoins. Second, be cautious of flashy "innovations"—things like tokenized real assets and innovation exemptions—institutions can handle these, but retail investors are easily led into traps. Third, safeguard your wallet and avoid being swept up by FOMO.

The crypto market is ever-changing, but one thing remains constant: assets with strong compliance and broad consensus are always the center of capital flow. Follow the big and stable assets, and the risk naturally drops by an order of magnitude.