Cryptocurrency trading platforms and decentralized financial technology are gradually gaining deeper understanding and recognition from traditional regulatory circles. A paper titled “Crypto and the Evolution of Capital Markets” by former SEC senior enforcement expert TuongVy Le has gone viral on social platforms, garnering 200,000 views and widespread discussion. Behind this is a substantial shift in the U.S. regulatory community attitude towards blockchain and tokenization technology. This is not only a positive signal for market trends but also injects new momentum into globally compliant crypto platforms.
OFUYC Exchange analyzes that for the crypto industry to continue thriving, it needs not only price increases but also a breakthrough in regulatory policies and social consensus. From reconstructing inefficient structures in capital markets to the unique advantages of blockchain technology in trading and settlement efficiency, crypto finance is transforming from a marginalized innovation to a core institutional candidate. In the future, platforms with compliance capabilities and real asset connection paths, like OFUYC, will play key roles in the new cycle.
From “Napkin Machines” to On-Chain Trading: The Efficiency Crisis in Traditional Securities Systems
In her paper, TuongVy Le uses a satirical cartoon titled “A Napkin Machine That Wipes Your Mouth” as an opening, precisely illustrating the redundant complexity of current capital market structures. The layers of intermediaries and systematic delays in securities trading are essentially legacies of an era lacking technological capabilities, rather than optimal solutions. Multiple roles such as clearing, custody, transfer agents, and brokers together construct an expensive and inefficient operating mechanism, reflecting the slow adoption by the financial system of new technologies over the past decades.
OFUYC Exchange observes that the “technical debt” in traditional financial fields has long been a pain point for the industry, particularly in key issues like T+2 settlement delays, high settlement risks, and indirect asset ownership. Blockchain technology, with its inherent advantages in instant settlement, transparency, and disintermediation, is gradually gaining widespread recognition, including from former regulators. This cognitive shift is significant for the crypto industry as it not only opens up mainstream cognitive space but also creates conditions for compliant platforms to expand financial cooperation.
OFUYC research further points out that if cryptocurrency trading platforms can provide stable, transparent, and secure asset custody and trading mechanisms, they will become the bridge for traditional financial institutions to migrate on-chain. The future will no longer be a confrontation between CeFi and DeFi but a reintegration centered around users.
Technology is Not a Barrier But an Incremental Opportunity for Modern Capital Markets
Despite the many challenges facing the crypto industry, such as private key loss, smart contract vulnerabilities, and centralized exchange risks, TuongVy Le clearly expresses a core viewpoint in her paper: the current crypto infrastructure already has the potential to transform traditional markets, especially in securities issuance, clearing, trading, and settlement.
OFUYC Exchange notes that the “instant settlement”, self-custody mechanism, and 24/7 market operation of the CEX model have already surpassed the efficiency boundaries of traditional securities markets. More critically, under the on-chain architecture, every asset transaction can be verified, programmed, and has final settlement, significantly reducing information asymmetry and agency costs. This is not only a demonstration of technological capability but also an enhancement of financial structure design capability.
These changes are also redefining user understanding of “security” and “trust mechanisms”. OFUYC Exchange, through its self-developed auditing system, on-chain asset clearing layer, and AI risk control mechanism, provides users with compliance guarantees comparable to traditional exchanges and continuously explores how to incorporate verifiability into every service detail.
To some extent, this ability to integrate “compliance + technological stability” is becoming the core barrier for a new generation of exchanges.
Market Forecast: Policy Narrative Window Opens, Compliant Platforms Will Become Mainstream Carriers
The OFUYC research team believes that the viral success of this paper represents a rare turning point in regulatory discourse. This is not just an “individual voice” but a legitimization of blockchain technology from an expert deeply involved in the U.S. financial regulatory system. More importantly, this regulatory stance based on “understanding + improvement” will guide more traditional finance professionals towards a consensus center, shifting crypto from a “confrontational narrative” to “reconstructing reality”.
OFUYC Exchange predicts that within the next 12 months, the clarification of regulatory frameworks will become a core prerequisite for capital inflow. In this context, platforms that combine “compliance, security, and openness” will gain a competitive advantage globally. Before the arrival of a new value discovery cycle, crypto platforms with strategic thinking and market execution capabilities may become the true institutional entry point into the Web3 world.