Original Author: Pan Zhi Fou
Old Wang, a veteran who has been navigating the A-share market for nearly twenty years, constantly talks about price-to-earnings ratios, economic moats, and value investing. Three years ago, if you mentioned Bitcoin to him, he would shake his head like a rattle drum and exclaim, "scam." At dinner parties, he would solemnly tell you, in a tone of an elder teaching a younger one, that this thing has no "fundamentals" and is purely a game of fooling the foolish, destined to end in chaos. However, at the most recent gathering, after a few rounds of drinks, Old Wang pulled out his phone and mysteriously began to research buying coins: "What’s the code for that Bitcoin ETF from BlackRock? And what exactly is that Meme they keep talking about?"
With BTC hitting new highs and ETH breaking through, the previously isolated "coin traders" and "stock traders" began to infiltrate each other—people in the crypto space are busy breaking out of their circles, more frequently discussing consensus and value with outsiders, perhaps feeling that this matter is finally worth more people understanding; meanwhile, on the stock market side, many have quietly set their sights on BTC and ETH, claiming to "just take a look," while actually having allocated a little bit.
This trend did not arise suddenly. On one side, the White House, Wall Street, and regulatory agencies have begun to get involved; on the other side, crypto companies are proactively discussing compliance and cooperation. After BTC surged to new highs, the invisible barrier between the crypto and traditional markets visibly loosened—beginning a two-way breaking of walls. So who is influencing whom now? Is the crypto space trying to push the crypto narrative into the mainstream? Or is the traditional industry starting to re-understand Web3?
1. Outsiders Want In: Wall Street, the White House, and Institutions Step In
The changes this year are quite evident. It’s not that insiders are getting excited about trading, but rather that outsiders are reaching in one by one. Capital is betting, policies are loosening, and votes are tilting—this batch of "outsiders" is clearly not here to just observe, but intends to participate. Moreover, they are not as urgent as before, but have suddenly started to accelerate.
You may not have bought coins, but the stocks you own are likely already dancing along with the "crypto circle." On July 16, during the night trading session of the US stock market, cryptocurrency concept stocks surged collectively, with GAME soaring 40%, BTCS rising over 17%, SBET up over 16%, BMNR increasing over 12%, UPXI up over 8%, BTBT rising nearly 7%, and BTCM up over 5%; these companies either directly hold cryptocurrencies like Bitcoin and Ethereum or are involved in blockchain mining, trading platforms, etc. They were originally marginal players, but now they have become the "leading brothers."
Politics is not lagging behind either. Trump had a positive attitude towards cryptocurrencies during his campaign and presidency, publicly stating that he wanted to make the US the "crypto capital." After winning, he quickly signed an executive order replacing many regulatory officials who were "singing the blues" about crypto. This series of actions led the media to label him as the "first crypto president," which may seem like a gimmick, but behind it is a genuine policy shift. Meanwhile, Congress has also been busy. Recently, Washington welcomed "Crypto Week"—Congress is intensively promoting several pieces of crypto legislation, including the stablecoin regulatory framework "GENIUS Act," the overall framework for regulating crypto assets "CLARITY Act," and a bill prohibiting the US from creating a central bank digital currency "Anti-CBDC Surveillance National Act." Although these bills have yet to be enacted, they have at least entered the formal process, indicating that the crypto industry is no longer being pulled back and forth in a "gray area," and everything is moving towards a clearer direction.
Traditional finance does not lack understanding of the value of crypto; it simply lacked a sufficiently stable policy expectation before. Once this uncertainty is reduced, their entry speed is much faster than you might think. For example, internet brokerages familiar to Chinese users, such as Tiger Brokers, Guotai Junan International, and Futu, have already begun testing crypto asset trading services; Standard Chartered Bank announced in July the launch of a digital asset platform for institutional clients, focusing on physical delivery of Bitcoin and Ethereum, becoming the first large bank in the world to dare to do so. If you think this is just a breakthrough by a few institutions, you underestimate the power of the trend. Additionally, Citigroup's CEO confirmed during the second-quarter earnings call that they are researching the launch of a "stablecoin" for internal settlements and client transactions; JPMorgan had already launched JPM Coin for inter-institutional payments back in 2020, and this year partnered with Coinbase to develop a "stablecoin-like" token named JPMD, facilitating large institutions to hold deposits on-chain directly, and JD.com has also publicly entered the space.
Even more aggressively, publicly traded companies have become FOMO (Fear of Missing Out) about crypto assets. The most typical example is MicroStrategy, the world's largest independent BI company. Since 2020, it has been "scooping up" Bitcoin, and now holds over 600,000 BTC, worth approximately $73 billion at current prices, with astonishing profitability. MicroStrategy's CEO, Michael Saylor, tirelessly promotes Bitcoin in various settings, viewing it as the best tool against inflation and for value storage. Following MicroStrategy's lead, more and more publicly traded companies are starting to follow suit: for example, US gaming company SharpLink Gaming announced that it would use Ethereum as its main reserve asset, planning to buy about 74,600 ETH between June and July 2025. As of July 17, 2025, its total holdings had reached approximately 321,000 ETH, making it the publicly traded company with the most Ethereum in the world. SharpLink even raised $413 million through a stock issuance, almost all of which was invested in Ethereum, and 99.7% of its holdings were used for staking to earn returns.
Traditional funds are now entering in a straightforward manner. For many traditional users, directly purchasing and holding cryptocurrencies still has barriers and concerns, and ETFs solve this problem, allowing traditional funds to enter the crypto market compliantly. At the beginning of 2024, the US SEC approved the first batch of Bitcoin spot ETFs, including those from major Wall Street firms like BlackRock and Fidelity, which lined up to launch their own Bitcoin ETFs. These ETFs allow users to trade cryptocurrencies like Bitcoin in their brokerage accounts just like stocks. In July 2025, the US also welcomed the first batch of Ethereum spot ETFs, effectively turning on the "faucet" of traditional finance.
2. Insiders Want to Break Out: Crypto Giants Cross Over, Using RWA to Connect with US Stocks
In contrast to the active entry of outside forces into the crypto field, the crypto industry itself is also striving to break out, attempting to expand its influence from the crypto circle to a broader mainstream world. This is mainly reflected in two aspects: first, cross-industry collaborations that bring crypto elements into traditional sports, entertainment, and other scenarios; second, global compliance layouts to obtain licenses and qualifications in various regions, integrating into the mainstream financial system.
Crypto companies are trying to find ways to step out of their small circles, and the most direct way is to showcase themselves on the international stage through mainstream entertainment and sports events. F1, the Premier League, Hollywood movies, NBA arenas… wherever there are crowds and high traffic, crypto pioneers go there. For example, OKX sponsors the McLaren F1 team while placing its logo on Manchester City players' jerseys; even in the F1-themed movie starring Brad Pitt, his racing suit and the car he drives also feature their logo. Coinbase spent heavily on advertising during the Super Bowl, and Crypto.com secured naming rights for the Lakers' home court… The intention behind these cross-industry marketing efforts is clear: to let "crypto brands" break free from self-indulgence and enter the mainstream recognition system.
To truly break out, mere brand exposure is not enough; it is more important to gain mainstream trust and regulatory recognition. Therefore, major crypto giants have invested resources in recent years to apply for compliance licenses in major global markets and build legal operating frameworks. In this regard, Coinbase is a long-standing model of compliance. It went public on Nasdaq in 2021, becoming the first publicly traded crypto exchange, backed by years of solid compliance investments—MSB licenses in multiple US states, New York's BitLicense, MiCA licenses in Europe, and FCA registration in the UK, with a compliance network already tightly woven. Additionally, OKX is also one of the most aggressive trading platforms. At the beginning of 2025, it first reached a settlement with the US Department of Justice to clear historical burdens, laying the groundwork for its return to the US market, and subsequently obtained high-value licenses such as Dubai's VARA license, Singapore's MPI license, and the EU's MiCA license, effectively opening up compliance access in major markets in Asia-Pacific and Europe and the US.
Many trading platforms that originated from the Web3 wave are now also starting to fill their compliance gaps. Although they are not among the first batch of compliance advocates, their posture has changed, and the direction is clear. This is not just about legal operation; it is a new watershed: the platforms that can run far are not competing on marketing tactics, but on whether they can survive under regulation. Those with licenses can sit at the traditional financial table; those without licenses can only muddle through.
In addition to enhancing their brand and licensing, the crypto industry itself has also been active, with products like OKX Wallet striving to connect Web3 entry points, allowing ordinary users to not just hear about concepts but to easily use blockchain services. The most typical example is that more and more crypto protocols are promoting the development of RWA (Real World Assets), enabling you to buy and sell traditional financial assets like Tesla and Nvidia stocks or bonds on-chain. This is not only an innovation in gameplay but also opens the door for more global users to participate fairly in traditional finance. In the past, buying US stocks required going through processes and cumbersome procedures; now, with on-chain tokens, many crypto users can easily enter the market.
The crypto industry is actively taking the initiative to break out: enhancing brand influence through cross-industry cooperation, winning mainstream trust through compliant operations, and innovating products to bridge the connection between reality and the virtual world. These efforts have already begun to show results—now, when you walk in Times Square in New York or on the streets of London, you can see advertisements from crypto companies; ordinary people can also easily access decentralized financial services through mobile wallets.
3. When the Crypto Circle Meets the US Stock Market, Who Will Change Whom?
When the crypto circle meets the US stock market, a question quietly becomes important: Is the crypto circle trying to push the crypto narrative into the mainstream? Or is the traditional industry starting to re-understand Web3?
The crypto industry talks about on-chain native trading logic, asset liquidity, and the possibilities of open finance, thereby reshaping financial infrastructure. For example, the rise of DeFi allows anyone to borrow, trade, and manage finances without needing a bank, directly challenging traditional banking operations. Similarly, stablecoins, as the "digital cash" of the crypto world, have already begun to shine in cross-border payments and trade settlements. These all demonstrate the breakthroughs of crypto technology over traditional financial infrastructure: transactions can occur 24/7 without interruption, settlements can be completed in seconds, and anyone with internet access can participate, no longer constrained by traditional institutions' business hours and entry barriers. It is foreseeable that the underlying architecture of the future financial system may gradually become blockchain-based.
While crypto attempts to change the traditional landscape, traditional forces are also profoundly altering the crypto space. The most obvious change is the intervention of regulation: governments and financial regulatory agencies around the world are accelerating the formulation of regulations for cryptocurrencies, integrating them into existing regulatory frameworks. Additionally, the large-scale entry of traditional capital may also change the power dynamics in the crypto field. When Wall Street giants become the largest holders of Bitcoin, and when the boards of publicly traded companies decide to include Ethereum on their balance sheets, the pricing power and discourse of the crypto market have, to some extent, shifted into the hands of traditional institutions. This is somewhat ironic for the original advocates of decentralization and anti-authoritarianism in crypto idealism, but it is a process that the industry must undergo to move towards the mainstream.
For the crypto industry, gaining traditional recognition means a larger user base and funding pool; for traditional finance, absorbing crypto innovations can improve efficiency and expand business boundaries. Therefore, rather than saying one side is breaking through the other, it is more accurate to say that we are entering a new phase of mutual integration. Throughout this integration process, two keywords are consistently present—innovation and compliance. Only by adhering to innovation can new value and growth points be continuously created, attracting the attention of outsiders; only by embracing compliance can mainstream trust and support be obtained, integrating into the existing system. These two aspects complement each other and are both essential.
On one hand, innovation is the fundamental driving force for breaking the deadlock. Since its inception, the crypto industry has relied on continuous technological and model innovations to drive development. From Bitcoin's decentralized ledger to Ethereum's smart contracts, and the emergence of new concepts like DeFi, NFTs, and DAOs, each innovation has expanded the boundaries of the industry and attracted new participants. At this stage, what the industry needs is truly disruptive killer applications. This could be a brand new financial service model that makes traditional finance look inferior; or it could be a platform that connects the real world, making ordinary people's daily lives more convenient through blockchain. For example, if ordinary people can easily complete cross-border payments of digital assets using stablecoins through crypto applications, with near-instantaneous transactions and almost zero fees, then traditional remittance services will need to innovate, and a large number of outsiders will naturally flow into the crypto ecosystem. Alternatively, when blockchain-based identity verification and data-sharing mechanisms are widely applied, people will no longer need to repeatedly submit cumbersome proof materials, significantly improving efficiency. Even if these users do not trade coins, they will have already become part of the blockchain world.
On the other hand, compliance is a necessary condition for breaking the deadlock. For the crypto industry to truly break out, it must address the trust issue, and compliance is key to building that trust. In the past few years, we have seen too many chaotic situations arising from a lack of regulation: trading platforms running away, Ponzi schemes, hacker attacks leading to losses, and so on. These events not only harmed investors but also created a negative impression of cryptocurrencies in traditional society. Therefore, the industry must proactively embrace regulation, enhancing transparency and accountability. Fortunately, more and more crypto companies have realized this. They are actively applying for licenses, improving risk control systems, and cooperating with regulatory authorities to combat illegal activities. This shift has gradually alleviated the concerns of mainstream institutions and the general public, making them willing to try engaging with crypto services. Compliance has restrained some of the "wildness," allowing the crypto space to run more steadily and further.
When Wall Street banks no longer look on coldly, when publicly traded companies treat ETH as cash flow, and when regulation begins to "lay tracks" for the industry, you can no longer view the crypto world of 2025 through the lens of 2020. The bubble may still exist, but the consensus has been rewritten by a different group: traditional banks are starting to offer crypto custody and trading services, crypto trading platforms are obtaining banking licenses to conduct deposit and loan businesses; stocks, bonds, and other assets are being issued and traded on the blockchain, and cryptocurrency ETFs and futures are becoming part of mainstream investment portfolios. Users can freely switch their allocations between crypto assets and traditional assets, while technology will ensure that all transactions and settlements occur in a transparent and secure environment. These scenarios are already beginning to take shape today and will become increasingly commonplace in the future.
This article is from a submission and does not represent the views of BlockBeats.
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