4E: The cryptocurrency market is experiencing a widespread decline, with the AI sector leading the drop by over 6%. The U.S. government plans to restart the regulatory process

According to 4E observations, as of 11 AM this morning, the cryptocurrency market has generally weakened, with the AI sector experiencing a 24-hour decline of 6.33%, leading the market down, and Bitcoin falling below $104,000. Market analysis suggests that this round of correction is mainly influenced by macroeconomic uncertainties and a slowdown in ETF fund inflows, leading to a cooling of short-term risk appetite.

The U.S. government shutdown may end this week, as bipartisan agreements have been reached in the Senate. After the shutdown is lifted, the SEC and CFTC will accelerate the resumption of regulatory and product approval processes. The SEC plans to prioritize the release of "exemptive relief" to support tokenization and cryptocurrency businesses, while continuing its investigation into digital asset treasury companies; the CFTC plans to promote "spot crypto trading and tokenized collateral" within the year and is negotiating with compliant exchanges to launch leveraged spot products as early as next month. Industry insiders expect that relevant bills will be submitted for presidential signature after coordination between the Banking Committee and the Agriculture Committee.

Meanwhile, SoFi has re-entered the cryptocurrency space with the launch of SoFi Crypto, supporting the trading of assets such as Bitcoin, Ethereum, and Solana, and integrating its banking services. This return marks SoFi's restart of this sector after suspending cryptocurrency services in 2023, indicating a resurgence of interest from traditional financial institutions in the compliant market.

In addition, the scale of tokenized assets on Ethereum has surpassed $200 billion, accounting for about two-thirds of the total tokenized assets across the network. Since the beginning of 2024, this sector has grown nearly 20 times, primarily driven by institutions like BlackRock and Fidelity pushing traditional assets onto the blockchain.

4E Commentary: Macroeconomic volatility combined with the resumption of regulation puts short-term pressure on the cryptocurrency market, but the re-entry of SoFi and traditional asset management institutions may open a new phase for the integration of on-chain assets and mainstream finance.