Cryptocurrency expert Alex Krüger has highlighted a critical flaw in digital asset projects: their intentional design to evade U.S. securities regulation. This strategy, aimed at avoiding classification as securities, leaves token holders without enforceable rights and contributes to high failure rates. The lack of legal protections allows project teams to operate without accountability, often leading to mismanagement and abandonment, leaving retail investors exposed. The Securities and Exchange Commission (SEC) has maintained a regulation-by-enforcement approach, creating uncertainty for crypto projects. Many projects structure tokens to fail the Howey Test, avoiding securities registration. This regulatory environment has led to a market where venture capital firms invest billions despite understanding these structural flaws, effectively using retail investors as exit liquidity. The industry's response has been to strip tokens of traditional investor protections, resulting in "empty assets" with economic value but no legal substance. This has pushed frustrated investors towards speculative assets like memecoins, intensifying market volatility. Addressing these structural issues is crucial for market stability and investor confidence.