With a single statement from the Federal Reserve Chairman, the decade-long high walls of the crypto world came crashing down.

On June 24, 2025, Federal Reserve Chairman Powell dropped a deep-water bomb on the global financial market: 'Banks can provide banking services to the cryptocurrency industry and conduct related business, provided that the safety and soundness of the financial system is ensured.'

He simultaneously announced: 'Legislation related to stablecoins is advancing, which is an exciting thing.'

01 Historic Turning Point: The regulatory walls have come crashing down.

Powell's two brief sentences ended a decade-long regulatory winter for the crypto industry. This marks a shocking shift: from regulatory exclusion to structured integration.

It's important to remember that just two years ago, the Federal Reserve prohibited banks from holding or issuing stablecoins through regulatory letter SR 23-8, firmly keeping traditional financial institutions outside the crypto world.

Now the policy has completely shifted:

Banks can re-enter the crypto ecosystem as reserve custodians, liquidity channels, and on-chain settlement nodes.

The Federal Reserve is studying loosening restrictions on crypto-related banking activities, with new guidance to be released in the second half of the year.

The blood vessels between traditional finance and the crypto world are officially connected, and the green light has been lit for the entrance of billion-dollar institutional funds.

02 Stablecoin Explosion: Legislative wave reshaping the financial foundation.

When Powell cheers for stablecoin legislation, behind it is the (Stablecoin Act) effective April 2025, which has laid down new rules of the game:

Mandating issuers to obtain federal licenses.

Maintain: $1 reserve transparency, ending the 'black box' era of reserves.

The U.S. Treasury and SEC jointly draft a requirement for stablecoins to connect to the central bank digital currency bridge.

More critically, two key bills are advancing:

(STABLE Act): Requires reserve isolation and imposes a two-year ban on algorithmic stablecoins.

(GENIUS Act): Establishes a dual regulatory framework at the federal and state levels, strengthening anti-money laundering requirements.

Regulation no longer discusses 'whether to regulate', but 'who controls it and how to integrate it'

03 Technological Revolution: Payment infrastructure redefined.

The wave of compliance is driving astonishing technological iterations; stablecoins have evolved from payment tools to financial operating systems.

Visa's settlement system with USDC completes cross-border payments in 3 seconds, with fees only 1/10 of SWIFT's.

Circle's 'Reserve Chain' achieves real-time on-chain asset reserves, completely ending the trust crisis.

Maersk's shipping platform uses USDC smart contracts to reduce cross-border logistics settlement time from 7 days to 4 hours.

Even more shocking is:

One million blue-collar workers in the Philippines are now receiving their salaries directly through USDC payroll cards.

Aave launches a stablecoin flash loan with an annual interest rate of only 0.5%, disrupting traditional financing models.

Payments, settlements, and credit — the three pillars of traditional finance are being reborn on-chain.

04 Giants Clash: Power reshuffling under the new financial order.

Traditional financial giants are moving, and an epic positioning battle has erupted:

Circle initiates its federal bank license application, obtaining a currency service license for all 50 states in the U.S., establishing a 'full licensing + top-tier custody' moat.

U.S. banks have publicly stated that if regulation allows, they will launch their own stablecoins.

BitGo applies for a full banking license, targeting the stablecoin custody supported by the Trump family’s World Liberty Financial.

Emerging forces are equally fierce:

Tether's TRC-20 USDT transfer cost has been reduced to $0.01, monopolizing the small payment market in Southeast Asia.

MakerDAO introduces RWA collateral, achieving 99.9% stability for DAI, becoming the cornerstone of DeFi liquidity.

Frax Finance releases more liquidity through a 'partially collateralized + algorithmic adjustment' mechanism.

05 The future has arrived: A roadmap to the trillion-dollar market.

With compliance infrastructure in place, explosive growth is inevitable:

By 2025, the global crypto payment scale will exceed $500 billion, with stablecoins accounting for over 80%.

By 2026, the locked amount of stablecoins in DeFi protocols will reach $1.2 trillion.

The cross-border payment market share is expected to reach 15% by 2027, directly dismembering the SWIFT system.

The evolution of technology is even more thrilling:

2025-2026: Cross-chain protocols will achieve frictionless cross-chain transfers within 1 second.

2027-2028: Quantum computing spurs the birth of quantum-resistant stablecoins.

2029-2030: AI-driven adaptive stablecoins will adjust collateral strategies in real-time.

06 Undercurrents: The deadly traps behind prosperity.

Amidst the feast, the astute always keep an eye on the risk radar:

Regulatory arbitrage maze: USDC is constrained by BitLicense in New York State, but applies to the relaxed STO framework in Wyoming.

Technical long-tail risk: In March 2025, a vulnerability in the USDC cross-chain contract caused a loss of $20 million.

The curse of centralization: USDT, USDC, and BUSD dominate 95% of the market.

The most dangerous is the death spiral of algorithmic stablecoins — the ghost of the 2023 UST collapse still lingers. Meanwhile, the USD1 stablecoin issued by the Trump family through World Liberty Financial raises questions about the monetization of presidential power.

When Powell stood at the Federal Reserve podium and said 'exciting', he personally pressed the nuclear button for the integration of traditional finance and the crypto world.

The bank vault doors slowly open, and trillions of dollars are queuing for entry numbers. From Maersk's cargo ships to Filipino workers' wallets, from Visa's settlement network to Aave's flash loans, a global tsunami of financial reconstruction has landed on the shore.

Those who are still hesitating whether to board will soon find themselves standing at the dock of Noah's Ark — the flood is coming, and the outline of the new continent is already clear.

History never waits for latecomers.

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