4E: The SEC's tone is easing, institutional financing is active, and crypto infrastructure is entering a period of acceleration

According to 4E observations, the latest review priorities announced by the U.S. SEC for the fiscal year 2026 do not specifically mention cryptocurrencies, which stands in stark contrast to the "strong regulation" approach of the past few years. New Chairman Paul Atkins emphasized that reviews should not become a "trap-like" process, shifting the focus to core areas such as fiduciary duties, custody, and customer protection, which the market generally interprets as a signal of a more lenient regulatory attitude.

On the market side, Kraken announced the completion of an $800 million financing round, reaching a valuation of $20 billion, and received a $200 million strategic investment from Citadel Securities, providing capital and market structure support for its 2026 IPO. Recently, Kraken has expanded its derivatives business through acquisitions, maintaining growth in trading volume and revenue, with significantly enhanced institutional confidence.

In terms of technological development, the Ethereum Foundation proposed the "Ethereum Interop Layer (EIL)," aimed at achieving a unified user experience across L2s, allowing all layer two networks to operate as smoothly as a single chain. Solutions built on ERC-4337 enable users to complete cross-chain operations with a single signature, eliminating the need for bridging or intermediaries, directly addressing the current fragmentation issues of L2s, and may become a key infrastructure direction for the Ethereum ecosystem in the coming years.

Traditional finance is also accelerating its on-chain transformation. HSBC announced it will open tokenized deposit services to clients in the U.S. and the UAE, enabling cross-border fund settlements in seconds and 24/7 availability, providing large enterprises with more efficient liquidity management tools. Tether has strategically invested in the Bitcoin-collateralized lending platform Ledn, which is rapidly growing its loan volume in 2025, becoming a leader in the crypto lending space.

4E Commentary: The regulatory side shows signs of moderation, institutions continue to increase their stakes, technological infrastructure breakthroughs accelerate alongside the on-chain transformation of traditional finance, and the crypto industry still demonstrates structural resilience amidst short-term market fluctuations. The current level of construction may solidify the underlying foundation for the next cycle.