Paul Atkins, Chairman of the US Securities and Exchange Commission (SEC), recently revealed that the "Cryptocurrency Market Structure Act" is about to be officially passed. This is not just another round of “regulatory rhetoric,” but a key turning point for the crypto industry as it moves from a gray area into the sunlight.

What will happen when the act is implemented? The most immediate change is that regulatory boundaries will be clarified. In the past, institutional funds were always on the sidelines, but now with transparent rules, compliant projects can receive official endorsement, and investors no longer have to worry about project teams running off with their money. However, while some will rejoice, others will be disappointed—those “air” projects that rely on hype and jumping on trends may be directly eliminated; only projects with real technology and that meet regulatory requirements will be seen as “quality assets” by institutions.

How should retail investors respond? Don’t be scared off by short-term volatility. The most important thing right now is to upgrade your understanding, and stop focusing solely on short-term trading with candlestick charts. Take some time to study the details of the act: Which projects meet the SEC’s definition of securities attributes? Which trading platforms might be the first to obtain compliance licenses? These information gaps are where ordinary investors can overtake others on the curve.

More importantly, after the act is passed, the crypto market may usher in an “institutional bull market.” Once traditional funds like pension funds and hedge funds enter the market on a large scale, the market structure will change dramatically—from retail investors cutting each other, to retail investors teaming up with institutions to compete against established whales. At that point, whoever can position themselves in the compliant track in advance will reap the first wave of dividends.

Of course, compliance doesn’t mean there will be gold everywhere. As regulation tightens, project operation costs will rise and market elimination will speed up. Investors will need more professional judgment and can no longer rely on “following the hype” to make quick money.

The market always rewards those who are prepared. This wave of compliance is both a reshuffling sickle and a touchstone for filtering out real value. In the crypto market, the most dangerous thing has never been a bear market crash, but the loss of opportunity caused by outdated understanding. The era of compliance is not the end, but a new beginning.