Solana News Today: Regulators and Investors Demand Crypto's Next Evolution: Trust, Not Tech

The crypto industry is increasingly prioritizing transparency and regulatory alignment over the pursuit of new blockchain infrastructure, as evidenced by recent developments across tokenization, regulatory frameworks, and market mechanisms. Galaxy Digital’s recent move to tokenize its SEC-registered shares on Solana marks a pivotal moment in bridging traditional and decentralized finance, demonstrating how public equities can leverage blockchain’s advantages such as real-time settlement and composability. Launched on Sept. 3 in partnership with Superstate, these shares operate on an on-chain transfer platform, with ownership tracked in real time as tokens move between self-custodied wallets. Galaxy’s CEO, Mike Novogratz, emphasized the initiative’s aim to blend the transparency of crypto with the regulatory safeguards of public equity. By early September, 32,374 shares had been tokenized, with 21 investors participating in this early phase, which is currently limited to KYC-verified participants [1].

This evolution mirrors a broader shift in the industry’s strategic focus. Instead of launching new blockchain protocols, firms are now seeking to enhance transparency in existing systems. Blockworks recently introduced the Token Transparency Framework, aimed at reducing information asymmetry and establishing new disclosure standards for tokens. The initiative, led by industry figures including Louis Thomazeau and Cosmo Jiang, is supported by protocols like Morpho and Stride. By setting benchmarks for token-level disclosures, the framework seeks to foster trust and fairness in the market, potentially influencing investor behavior and institutional allocations. The initiative aligns with historical trends showing that transparency enhancements, such as Messari’s Transparency Registry, have incrementally improved market legitimacy and investor confidence [3].

Market activity in Solana’s memecoin sector also reflects this shift, with Pump.fun implementing a dynamic fee model to better align creator incentives with token performance. The updated "Project Ascend" framework scales fees between 0.05% and 0.95%, depending on the token’s market cap. This replaces a previous flat model and is part of Pump.fun’s broader strategy to recover lost market share from rivals like Bonk. With over $834 million in total revenue generated and more than $68.9 million in token buybacks, the platform has demonstrated resilience despite earlier volatility. Daily trading activity remains robust, with 200,000 to 300,000 traders participating and over 12.7 million tokens created since launch. The model underscores a growing emphasis on incentive alignment and market fairness over arbitrary pricing structures [2].

Regulatory developments further underscore the industry’s shift toward transparency and standardization. The European Union’s Markets in Crypto-Assets (MiCA) framework, which became fully operational at the end of 2024, has established a unified regulatory environment for crypto across the bloc. MiCA’s passporting system allows firms approved in one EU jurisdiction to operate throughout the continent, attracting major players like Coinbase and OKX. European Central Bank President Christine Lagarde has highlighted potential weaknesses in MiCA, particularly in multi-issuance schemes involving non-EU stablecoin issuers. She has called for stronger equivalence regimes to prevent regulatory arbitrage, where weaker jurisdictions could undermine safeguards. These concerns reflect a broader trend of international regulatory collaboration, with Europe currently ahead of the U.S. in shaping comprehensive crypto policy [5].

Meanwhile, the U.S. regulatory landscape remains in flux. While President Donald Trump signed the GENIUS Act into law to establish a regulatory framework for stablecoins, the U.S. lags behind the EU in creating a cohesive national approach. The GENIUS Act, which focuses primarily on stablecoin oversight, aims to enhance consumer protections and reduce fraud, but broader regulatory clarity is still lacking. European officials have raised concerns about the geopolitical implications of U.S.-backed stablecoins, with Lagarde emphasizing the need for a digital euro to maintain European monetary autonomy. The differing regulatory approaches between the U.S. and EU highlight an ongoing divergence in how governments view crypto’s role in the global financial system, with Europe increasingly positioned as the industry’s regulatory leader [4].

Source:

[1] Galaxy tokenizes SEC-registered shares on Solana (https://blockworks.co/news/galaxy-tokenizes-sec-shares)

[2] Pump.fun adopts dynamic fee model as market share ... (https://blockworks.co/news/pumpdotfun-fee-model)

[3] Blockworks Launches Token Transparency Framework for ... (https://www.kanalcoin.com/blockworks-token-transparency-framework-launch/)

[4] Crypto Rules in Europe vs. the US: Does Your Stablecoin ... (https://www.nasdaq.com/articles/crypto-rules-europe-vs-us-does-your-stablecoin-strategy-need-change)

[5] European Central Bank chief urges stricter oversight of non ... (https://www.theblock.co/post/369439/european-central-bank-chief-warns-stablecoin-risks)