Ava Labs and Blockchain Association Meet with SEC: Protocol Token Regulatory Framework Focused on Discussion, AVAX Price Strengthens Simultaneously

Avalanche blockchain developer Ava Labs, the Blockchain Association, and the Digital Chamber of Commerce recently held a key meeting with the U.S. Securities and Exchange Commission’s (SEC) Cryptocurrency Working Group to discuss the direction of U.S. regulation of protocol tokens and crypto assets. The meeting also included legal experts from Sidley Austin LLP, focusing on how the SEC and the Commodity Futures Trading Commission (CFTC) are aligning regulations.

According to the memorandum issued by the SEC, the meeting focused on optimizing the regulatory structure for cryptocurrencies, enhancing industry transparency, and clarifying the regulatory ownership of protocol tokens across different lifecycles. The “two-phase regulatory framework” proposed by Ava Labs and Sidley Austin was one of the centers of the discussion. The proposal suggests: the first sale of protocol tokens before the launch is regulated by the SEC and treated as an investment contract; After the token is launched, it will be regulated by the CFTC and treated as a commodity. This initiative aims to provide a clearer and more enforceable regulatory environment for protocol tokens without relying on new legislation.

Participating institutions said that clarifying the regulatory framework not only helps protect investors but is also crucial for driving responsible innovation and attracting more crypto businesses back to the United States. This aligns with the core goal of the Crypto Market Structure Act, which is to strike a balance between regulation, security, and innovation.

Meanwhile, Avalanche (AVAX) has also shown strong momentum in its market performance. Over the past 24 hours, AVAX has risen nearly 8% and is currently trading at $14.58, with a trading volume increase of approximately 48% over the same period, indicating a significant increase in buying. Derivatives market data was equally strong, with AVAX futures open interest hitting $547.81 million, up more than 8% in 24 hours. The open interest of many CEX platforms has recorded significant growth, indicating that the willingness of institutional and professional traders to go long is increasing.

Additionally, AVAX has been included in the Bitwise 10 Crypto Index ETF (BITW), further demonstrating its growing recognition at the institutional level. As discussions on regulatory clarity continue to advance, the AVAX ecosystem and market sentiment are benefiting simultaneously, and may continue to maintain a strong trend in the short term.