Reality is always louder than analytics.

Policy initiatives, institutional deployments, and public participation form a triple resonance, accelerating cryptocurrency’s shift from fringe speculative assets into the mainstream financial system.

 

Innovative financial instruments such as stablecoins and Bitcoin ETFs achieve seamless integration between traditional finance and crypto assets, promoting deep convergence across payment, investment, and collateral markets.

 

Regulatory compliance and institutionalization trends are driving the crypto market toward gradual maturity, expected to form a more standardized, diversified, and resilient digital asset financial ecosystem.

When U.S. Treasury Secretary Scott Bassett announced the “largest merger in history”—the deep integration of Main Street and Wall Street, cryptocurrencies are becoming the core link in this financial transformation.

 

POLICY-DRIVEN INSTITUTIONAL BRIDGE

 

U.S. Treasury Secretary Bassett proposed the “Main Street and Wall Street merger” strategy, aiming to break down the barriers between ordinary citizens and professional financial markets. Cryptocurrencies, with their low threshold and high liquidity, are the core tools to achieve this goal.

 

The Trump administration’s “One Big Beautiful Bill” was officially signed into law on July 4, 2025. The “Trump Account” automatically provides $1,000 tax-deferred investment accounts for newborns from 2025 to 2028, with parents and employers able to add funds to diversified index funds. This policy cultivates public investment awareness from the ground up, laying a foundation for innovative investment categories such as crypto assets. As Trump said, “Let every child share in market growth from birth, owning financial assets from day one.”

 

Clearer regulatory frameworks further lower institutional participation barriers. The SEC repealed the 2022 SAB 121 accounting rule, no longer classifying cryptocurrencies as bank liabilities, significantly reducing capital pressure for traditional financial institutions engaging in crypto business. The Trump administration’s “GENIUS Act” (U.S. Stablecoin Act) passed the Senate on June 17, 2025, with a bipartisan vote of 68-30. It requires U.S. dollar stablecoins to be 1:1 backed by cash or short-term U.S. Treasuries and subject to monthly audits by independent certified public accounting firms and executive certification. This framework resolves compliance issues while creating an incremental funding channel for the U.S. Treasury through the “stablecoin–Treasury” loop. By 2030, compliant stablecoins reaching $3.7 trillion could generate over $2 trillion in structural demand for U.S. Treasuries. The dual policy thrust—cultivating public foundations and establishing a compliance framework—paves the transmission path from policy to market for cryptocurrencies.

 

INSTITUTIONAL DEPLOYMENT OF CRYPTO MAINSTREAMING

 

Policy incentives have directly driven intensive actions by mainstream financial institutions. BlackRock’s iShares Bitcoin ETF (IBIT), the world’s largest Bitcoin ETF, has surpassed $70 billion in assets under management, with custody provided by Coinbase Prime. Its holdings account for 3.3% of global Bitcoin supply, making it one of the major holders. JPMorgan allows institutional clients to use Bitcoin and Ethereum as loan collateral; Morgan Stanley plans to open mainstream crypto trading to retail platform users; State Street, BNY Mellon, and other traditional financial giants are rolling out crypto asset custody services. Following clear policy guidance, institutions have reassessed crypto asset risk-reward ratios, turning to strategic deployments as a new industry trend.

 

Public investment enthusiasm has also continued to rise under policy guidance. Despite Bitcoin experiencing a sharp correction in 2025, falling 33% from the October high of $126,000 and a year-to-date decline of approximately 6%, long-term investment demand continues to be released. Michael and Susan Dell donated $6.25 billion to establish Trump Accounts for 25 million children from low-income families, with an additional $250 injection, covering more than half of newborns in the U.S. Bassett predicts a “huge tax refund year” in Q1 2026, and tax cuts will significantly increase disposable income. The convenience of crypto ETFs, which require no private key management and align with traditional investment habits, provides an ideal investment outlet for these incremental funds. The divergence between short-term market volatility and long-term trends indicates that the crypto market is transitioning from speculative dominance to a stage supported jointly by institutions and the public.

 

 

STABLECOIN INNOVATION BRIDGING TRADITIONAL AND DIGITAL FINANCE

 

Stablecoins, as the core link between fiat and crypto ecosystems, represent a key breakthrough in institutionalizing crypto finance. The U.S. Stablecoin Act establishes the federal legality of payment-type stablecoins for the first time, addressing longstanding trust issues through a dual mechanism of “reserve audits + licensed operations.” Currently, stablecoin giant Tether (USDT) holds over $120 billion in U.S. Treasuries, surpassing the holdings of many sovereign nations. With the act’s implementation, traditional financial institutions like JPMorgan and PayPal are expanding stablecoin use cases, from cross-border payments to everyday consumption, positioning stablecoins as mainstream payment options alongside traditional methods.

 

Integration between crypto assets and traditional financial instruments is accelerating. The successful issuance of Bitcoin ETFs enables seamless access to crypto via traditional investment accounts, allowing pensions, mutual funds, and other long-term capital to enter compliantly. JPMorgan includes Bitcoin and Ethereum as eligible loan collateral, granting them parity with stocks and bonds and marking crypto assets’ entry into the core global financial system. Coinbase Global (COIN) was officially included in the S&P 500 on May 19, 2025, allowing global equity index fund investors to indirectly increase exposure to crypto-related assets through passive investment. Multi-dimensional integration across payment, investment, and collateral scenarios continues to accelerate crypto penetration into the mainstream financial ecosystem.

 

CONCLUSION

 

Under the triple influence of policy, institutions, and public participation, the crypto market is showing three major trends: rising compliance thresholds, where small projects lacking regulatory qualifications will be eliminated and market concentration increases; institutional-led market, where major players’ deployments reduce volatility and crypto assets gradually become diversified allocation options; and deepening ecosystem integration, where stablecoins open payment channels and crypto assets as collateral and financing instruments blur the boundaries of traditional finance, forming an on-chain–off-chain linked financial ecosystem. Potential challenges remain, including stablecoin redemption concentration risk, complex cross-border regulatory coordination, and balancing technological innovation with risk management. The merger of Main Street and Wall Street has opened the door for cryptocurrencies to mainstream. When the “Trump Account” makes newborns potential investors, when $70 billion ETFs make Wall Street giants holders, and when stablecoin regulatory frameworks provide institutional safeguards, cryptocurrencies are no longer niche experiments but a force reshaping the global financial landscape.

 

Read More:

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〈The Fusion Revolution of Main Street and Wall Street: Triple Resonance of Cryptocurrency Mainstreaming〉這篇文章最早發佈於《CoinRank》。