--- title: "Observations on Crypto Compliance Regulation" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/38268128.md" description: "An observation, not necessarily correct, just for personal record: Recently, both Cathie Wood and Tom Lee have publicly spoken out, explaining the reasons for the current downturn in Crypto. Both attributed the reasons to the technical issues of the exchange on 10.10, resulting in a loss of 28 billion in liquidity, and the market sentiment is still recovering. When influential analysts simultaneously use the same rhetoric to discuss the reasons, it means they are trying to establish a certain consensus and narrative, namely that 'the liquidity risk in crypto comes from the technical issues of offshore exchanges.' When users, the industry..." datetime: "2026-01-30T05:46:03.000Z" locales: - [en](https://longbridge.com/en/topics/38268128.md) - [zh-CN](https://longbridge.com/zh-CN/topics/38268128.md) - [zh-HK](https://longbridge.com/zh-HK/topics/38268128.md) author: "[lyhalfway](https://longbridge.com/en/profiles/3372973.md)" --- # Observations on Crypto Compliance Regulation An observation, not necessarily correct, just a personal record: Recently, both Cathie Wood and Tom Lee have publicly spoken out, explaining the reasons for the current downturn in Crypto. Both attributed the cause to the technical issues at exchanges on 10.10, which resulted in a $28 billion liquidity loss, and market sentiment is still recovering. When influential analysts simultaneously use the same rhetoric to discuss the reasons, it means they are trying to establish a certain consensus and narrative—that 'crypto liquidity risks stem from technical issues at offshore exchanges.' When users, the industry, and regulators all align on this logic, it points to a new regulatory narrative: Onshore compliant exchanges, operating by the book, are good and safe. Offshore high-leverage platforms, with lax management, are bad and the source of risk. This is positive for U.S. domestic exchanges and the compliance narrative. Players like Coinbase, DAT, and regulated ETFs are defined as 'stable and trustworthy' within this narrative. If something goes wrong in the future, funds will instinctively flow here. It also paves the way for future regulatory tightening. If the public has already accepted the psychological anchor that 'offshore equals risk,' then when the government later strengthens sanctions on offshore platforms, cuts off fiat channels, or demands compliance disclosures, the resistance will be much smaller. By then, everyone will see it as protecting the market rather than stifling innovation. ### Related Stocks - [WOOD.US](https://longbridge.com/en/quote/WOOD.US.md) - [BMNR.US](https://longbridge.com/en/quote/BMNR.US.md) - [LEE.US](https://longbridge.com/en/quote/LEE.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [DAT.US](https://longbridge.com/en/quote/DAT.US.md) - [WOOD.UK](https://longbridge.com/en/quote/WOOD.UK.md) - [SARK.US](https://longbridge.com/en/quote/SARK.US.md) - [ARKX.US](https://longbridge.com/en/quote/ARKX.US.md) - [CONL.US](https://longbridge.com/en/quote/CONL.US.md) - [07311.HK](https://longbridge.com/en/quote/07311.HK.md) ## Comments (12) - **镰刀嚯嚯 · 2026-01-31T02:22:53.000Z**: Although it benefits Onshore exchanges, it can't stop $Coinbase(COIN.US)and $Robinhood(HOOD.US)from falling endlessly, both have broken the 200-day moving average. This kind of decline is really hard to understand. - **Kuiren Taoffett · 2026-01-30T06:35:47.000Z · 👍 1**: Could it be because the next Federal Reserve Chairman is Walsh, a hawkish figure who is extremely averse to high-risk assets...That's why the volatility is so high - **lyhalfway** (2026-01-30T08:14:38.000Z): This may be one of the reasons - **FakePhoenix · 2026-01-30T05:49:30.000Z · 👍 2**: On Longbridge, there are still people who think 1011 wasn't done by Binance. - **FakePhoenix** (2026-01-30T06:01:50.000Z): Moreover, the fact that Wood could mention Binance's name in the media indicates there is solid evidence and no fear of being sued. At the end of last year, Tom Lee didn't dare to mention the name, an - **FakePhoenix** (2026-01-30T06:03:02.000Z): We need the Clarity Act to prove that the cryptocurrency market is an investable market, not a casino where people blindly manipulate K-lines and get liquidated. - **RH哥哥 · 2026-01-30T05:49:24.000Z · 👍 1**: Bro, this feels a bit like a conspiracy theory haha - **lyhalfway** (2026-01-30T05:53:22.000Z): All are compliance-regulated encryption, continuing the major strategic direction of dollar dominance, treating guests, beheading, and taking them as dogs - **FakePhoenix** (2026-01-30T05:58:35.000Z): clarity act 要过了终于半个天亮了至少有点清晰度了 - **blingbling · 2026-01-30T05:48:10.000Z · 👍 1**: Their irresponsible statement blaming Binance for the crypto slump is simply ridiculous😂 - **哎呀 脚滑了** (2026-01-30T06:43:10.000Z): +1 - **韩立的交易员** (2026-01-30T07:16:06.000Z): Always need to find a scapegoat