The latest research report from investment banks has sent a key signal — although structural legislation for the US crypto market is expected to start in 2026, don’t expect rapid implementation. The reasons are solid: disagreements over conflict of interest clauses, anti-money laundering rules, and DeFi compliance requirements, coupled with Congress being distracted by midterm elections, mean that the final rules may be delayed until 2027, with enforcement pushed back to 2029.

This shift in the timeline is changing the flow of capital. Previously, those betting on "regulation clarifies and then takes off" are now shifting towards short-term trading strategies. This is no small matter — it’s directly altering the entire market structure.

The most affected are projects that rely on compliance narratives for support. When policy expectations are postponed, valuation support weakens. Meanwhile, large institutions, lacking long-term legal certainty, are slowing their allocation pace and preferring to deploy capital through existing compliant channels like ETFs, which are relatively less risky.

But don’t be too pessimistic. Regulatory guidance such as SEC’s innovation exemptions continues to advance, providing phased opportunities for the industry. Looking ahead, the market will show clear differentiation: leading assets will stabilize due to strong fundamentals and institutional recognition, while opportunities for small and mid-cap tokens will come more from short-term trading opportunities. For investors, the key is to see through the emotional fluctuations caused by policy uncertainties, focus on projects with real applications and cash flow potential, and remain cautious of targets that rely solely on compliance stories.