Old Wang, a veteran who has been through the A-share market for nearly twenty years, talks incessantly about price-earnings ratios, economic moats, and value investing. Three years ago, if you brought up Bitcoin to him, he would shake his head like a rattle drum and say, 'It's a scam.' At dinner gatherings, he would use a tone like a senior teaching a junior, earnestly telling you that this thing has no 'fundamentals' and is purely a game of fooling the naive, ending in disaster. However, just at the most recent gathering, after a few rounds of drinks, Old Wang took out his phone and began to study buying crypto mysteriously: 'What’s the code for that Bitcoin ETF from BlackRock? Also, what exactly is that Meme they are talking about?'
With BTC hitting new highs and ETH breaking through, the previously isolated 'crypto traders' and 'stock traders' are beginning to permeate each other—the crypto crowd is busy breaking out, more frequently discussing consensus and value with outsiders, possibly because they feel this matter is finally worth understanding by more people; meanwhile, on the stock market side, many are quietly eyeing BTC and ETH, saying 'just taking a look,' while they have actually allocated a little.
This trend did not arise suddenly. On one side, the White House, Wall Street, and regulatory agencies are starting to get involved; on the other side, crypto companies are actively discussing compliance and cooperation. After BTC hit new highs, the invisible barrier between the crypto and traditional markets has visibly loosened—initiating a two-way breaking of walls. So now, who is influencing whom? Is the crypto world trying to push the crypto narrative into the mainstream? Or is the traditional industry starting to re-understand Web3?
1. Outsiders want to enter: Wall Street, the White House, and institutions are all getting involved.
The changes this year are quite evident. It is not the insiders who are excited about trading, but rather outside hands that are gradually reaching in. Capital is placing bets, policies are loosening, and votes are tilting—the 'outsiders' this time are clearly not here to observe, but intend to step onto the field. And it is a sense of urgency that has suddenly accelerated.
You may not have bought cryptocurrencies, but the stocks you bought are likely already dancing to the tune of the 'crypto world.' On July 16, during the after-hours trading session of US stocks, crypto concept stocks collectively surged, with GAME skyrocketing by 40%, BTCS rising over 17%, SBET over 16%, BMNR over 12%, UPXI over 8%, BTBT nearly 7%, and BTCM over 5%; these companies either directly hold cryptocurrencies like Bitcoin and Ethereum or are involved in blockchain mining and trading platforms. They were originally marginal players, but now they have become 'leading figures.'
Politics is not to be outdone. Trump had a positive attitude towards cryptocurrencies during his campaign and presidency. He not only publicly stated his intention to make the US the 'crypto capital,' but after winning, he signed an executive order at the first opportunity, 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.' It seems like a gimmick, but behind it is a substantial policy shift. Meanwhile, Congress has not been idle. Recently, Washington welcomed 'Crypto Week'—Congress is actively promoting multiple crypto legislations, including a regulatory framework for stablecoins (GENIUS Act), an overall framework for regulating crypto assets (CLARITY Act), and a bill to prohibit the US from creating a central bank digital currency (Anti-CBDC Monitoring National Act). Although these bills have yet to be implemented, they have at least entered the formal process, indicating that the crypto industry is no longer being pulled back and forth in a 'grey area'; everything is moving towards a clearer direction.
Traditional finance does not lack an understanding of the value of crypto; it has just previously lacked a sufficiently stable policy expectation. Once this uncertainty is diminished, their entry will happen much faster than you think. For example, internet brokerages familiar to many 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 that it has launched a digital asset platform for institutional clients, focusing on physical delivery of Bitcoin and Ethereum, becoming the first large bank in the world to do so. If you think this is just a single 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 studying the launch of a 'stablecoin' for internal settlements and client transactions; JPMorgan had already launched the JPM Coin for inter-institutional payments back in 2020, and this year collaborated with Coinbase to develop a token called JPMD, making it convenient for large institutions to hold deposits on-chain. JD.com has also publicly entered the field.
Even more strikingly, listed companies are also becoming FOMO (fear of missing out) and aggressively allocating crypto assets. The most typical example is MicroStrategy, the world's largest independent BI company. Since 2020, it has been on a buying spree, with its total Bitcoin holdings now exceeding 600,000 coins, worth approximately $73 billion at current prices, demonstrating incredible profitability. MicroStrategy's CEO, Michael Saylor, has been tirelessly promoting Bitcoin in various settings, viewing it as the best tool to combat inflation and store value. Driven by MicroStrategy, more and more listed companies are starting to follow suit: for example, the American gaming company SharpLink Gaming announced that it would use Ethereum as its primary 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 listed company with the most Ethereum holdings globally. SharpLink even raised $413 million through a stock issuance, investing almost all of it in Ethereum and using 99.7% of its holdings for staking to earn rewards.
Traditional capital has begun to enter in a dignified manner. For many traditional users, directly purchasing and holding cryptocurrencies still has thresholds and concerns; ETFs solve this problem, allowing traditional funds to enter the crypto market in a compliant manner. In early 2024, the US SEC approved the first batch of Bitcoin spot ETFs, including those from major Wall Street firms such as BlackRock and Fidelity, which lined up to issue their Bitcoin ETFs. These ETFs allow users to trade Bitcoin and other crypto assets in their securities accounts like buying and selling stocks. In July 2025, the US also welcomed the listing of the first batch of Ethereum spot ETFs, effectively turning on the 'faucet' of traditional finance.
2. People in the circle want to break out: crypto giants cross over and connect with the US stock market through RWA.
In response to the active entry of outside forces into the crypto field, the crypto industry 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 cooperation for brand and ecosystem, allowing crypto elements to appear in traditional sports, entertainment, and other scenarios; second, global compliance layout, acquiring licenses in various regions to integrate into the mainstream financial system.
Crypto companies are trying to break out of their small circles; the most direct way is to leverage mainstream entertainment and sports events to appear on the international stage. F1, the Premier League, Hollywood movies, NBA home games... wherever there are crowds and traffic, crypto pioneers will go. For instance, OKX sponsors the McLaren F1 team while putting their logo on Manchester City players' jerseys; even in the F1-themed movie featuring Brad Pitt, the racing suit he wears and the car he drives both display their logo. Coinbase spent heavily on advertising during the Super Bowl, and Crypto.com secured naming rights for the Lakers' home games... 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 key global markets and establish legal operating frameworks. In this regard, Coinbase is a veteran example on the compliance path. In 2021, it went public on Nasdaq, becoming the first publicly listed crypto exchange, backed by its years of solid compliance investment—MSB licenses in multiple US states, New York's BitLicense, the MiCA license in Europe, and FCA registration in the UK, creating a dense compliance network. Additionally, OKX is also one of the exchanges making the most significant push. At the start of 2025, it first reached a settlement with the US Department of Justice, clearing its historical burden to lay the groundwork for returning 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, essentially opening up compliance access to mainstream markets in Asia-Pacific, Europe, and the US.
Many exchanges that started during the Web3 wave are now also working to fill their compliance gaps. While they may not be among the first to embrace compliance, their stance has changed, and the direction is clear. This is not just about operating legally; it is also a new watershed: truly sustainable platforms are competing not on marketing tactics, but on whether they can operate under regulation. Those with licenses can join the traditional financial table; those without licenses can only muddle along.
In addition to enhancing their brand and obtaining licenses, the crypto industry itself has also been active. Products like OKX Wallet are working hard to bridge the Web3 entry, allowing ordinary users not just to hear about the concept but to truly use blockchain services easily. However, the most typical example is that more and more crypto protocols are pushing for the development of RWA (real-world assets), allowing you to buy and sell stocks like Tesla, Nvidia, or bonds, which are traditional financial assets on-chain. This is not only an innovation in gameplay but also opens the door for more global users to fairly participate in traditional finance. In the past, buying US stocks required cumbersome procedures, but 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 yield results—now if 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 world meets the US stock market, who will change whom?
When the crypto world meets the US stock market, one question quietly becomes important: Is the crypto world trying to push the crypto narrative into the mainstream? Or is the traditional industry starting to re-understand Web3?
The crypto industry is about the on-chain native transaction logic, asset liquidity, and the possibilities of open finance, thereby reshaping financial infrastructure. For example, the rise of DeFi allows anyone to lend, trade, and manage finances without banks, posing a direct challenge to traditional banking business. Similarly, stablecoins, as the 'digital cash' of the crypto world, have begun to shine in cross-border payments and trade settlements. These demonstrate the breakthroughs that crypto technology has made to 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 the operating hours and entry barriers of traditional institutions. It is foreseeable that the underlying architecture of the future financial system may gradually be blockchainized.
As crypto tries to change tradition, traditional forces are also profoundly changing crypto. The most obvious is the intervention of regulation: governments and financial regulatory agencies around the world are accelerating the formulation of regulations targeting cryptocurrencies, incorporating 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 board of a listed company decides to include Ethereum in its balance sheet, the pricing power and discourse power 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 go through 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 who is breaking through whom, it is more accurate to say we are in a new stage of mutual integration. Throughout this fusion process, two keywords run through it—innovation and compliance. Only by persisting in innovation can we continuously create new value and growth points to attract the attention of outsiders; only by embracing compliance can we gain mainstream trust and support, integrating into existing systems. These two are complementary and indispensable.
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 promote development. From the decentralized ledger of Bitcoin to the smart contracts of Ethereum, and the emergence of new concepts such as DeFi, NFT, and DAO, every innovation has expanded the boundaries of the industry and attracted new participants. At the current stage, the industry needs truly disruptive killer applications. This could be a completely new financial service model that makes traditional finance seem inadequate; or it could be a platform connecting the real world, making everyday life easier for ordinary people through blockchain. For example, if ordinary people can easily complete cross-border payments of digital assets with stablecoins through crypto applications, with instant arrival and almost zero fees, then traditional remittance businesses will need to innovate, and a large number of outsiders will naturally flock to the crypto ecosystem. Or, when blockchain-based identity verification and data-sharing mechanisms are widely applied, people will no longer need to repeatedly submit cumbersome proof materials, greatly improving efficiency. Even if these users do not trade cryptocurrencies, they 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 resulting from a lack of regulation: exchanges running away, Ponzi schemes, hacker attacks and losses, and so on. These events not only harmed investors but also left traditional society with a negative impression of cryptocurrencies. Therefore, the industry must proactively embrace regulation, improve 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 agencies to combat illegal activities. This shift is gradually alleviating the concerns of mainstream institutions and the general public, making them willing to try crypto services. Compliance has restrained some of the 'wildness,' allowing the crypto circle to run more steadily and further.
When Wall Street banks no longer watch coldly from the sidelines, when listed companies treat ETH as cash flow, and when regulators start 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 be there, but the consensus has been rewritten by a different group: traditional banks are beginning to offer crypto custody and trading services, crypto exchanges are obtaining banking licenses to conduct deposit and lending businesses; assets such as stocks and bonds are being issued and traded on the blockchain, and crypto ETFs and futures are becoming part of mainstream investment portfolios. Users can freely switch configurations 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 common in the future.
