On the global financial market chessboard, the cryptocurrency sector is undergoing a far-reaching shift in policy direction. This shift is not only reshaping the landscape of the cryptocurrency field but also bringing unprecedented opportunities and challenges to market participants.
U.S.: From high-pressure regulation to active embrace.
In recent years, U.S. cryptocurrency regulatory policies have seen 'roller coaster' changes. During the period from 2022 to 2023, the Federal Reserve issued a series of regulatory guidelines for banks regarding crypto assets and dollar tokens, including a requirement in 2022 that banks must report before engaging in crypto business, raising the industry's entry barrier; in 2023, it further defined crypto assets on decentralized networks as 'not compliant with banking security standards' and introduced a 'no objection' licensing process, granting regulators veto power. This series of measures has been viewed as the Biden administration's 'Stifling Action 2.0,' leading to a significant reduction in banks serving cryptocurrency businesses, such as Silvergate Bank's stock price plummeting 92% due to the FTX incident, subsequently exiting the stablecoin business, and many regional banks closing their crypto services.
However, with Trump's return to the White House in 2025, the direction of crypto regulation has made a 180-degree turn. In March 2025, the Office of the Comptroller of the Currency (OCC) issued new regulations allowing national banks to provide crypto asset custody, stablecoin reserve management, and blockchain node services without approval, overturning the restrictive policies from the Biden era. OCC Acting Comptroller Hood clearly stated, 'Digital assets must be integrated into the U.S. economy.' Trump himself criticized 'Stifling Action 2.0' at a cryptocurrency summit as 'government weaponization against the industry,' pledging to end discriminatory services from banks to crypto businesses.
On April 17, Federal Reserve Chairman Powell clearly stated the direction of regulatory easing during a speech at the Chicago Economic Club, acknowledging the trend of cryptocurrency mainstreaming and stating that a stablecoin regulatory framework would be established to unleash innovation potential. Subsequently, on April 25, the Federal Reserve officially announced the withdrawal of the 2022 regulatory guidelines regarding banks' crypto assets and dollar token businesses, abolished the 2023 'no objection' procedure, and exited the risk policy statement on crypto assets jointly issued with the Federal Deposit Insurance Corporation (FDIC) and the OCC. This decision marks the end of a three-year high-pressure period, with compliance thresholds and legal risks significantly reduced.
The policy shift has brought immediate effects. Banks are restarting crypto services, and more financial institutions are beginning to provide accounts and payment channels for exchanges and stablecoin issuers, improving fiat liquidity. Circle CEO Jeremy Allaire stated, 'The restoration of bank channels will accelerate the application of stablecoins in cross-border payments and DeFi.' Additionally, the Trump administration has released a series of positive signals, such as the SEC approving altcoin ETFs, abolishing DeFi broker rules, and appointing crypto-friendly officials, coupled with bank deregulation policies, greatly increasing the likelihood of attracting traditional capital on a large scale. Analysts at the XBIT decentralized exchange platform predict that improved liquidity and regulatory transparency will help Bitcoin break historical highs, as the industry enters the 'compliance development 2.0 phase.'
Moreover, SEC Commissioner Hester Peirce announced that she will lead a team of professionals on a nationwide tour of ten cities this fall, aiming to systematically collect first-hand feedback from industry stakeholders, developers, and investors through in-depth roundtable discussions. The agency's special cryptocurrency working group has also shown strong interest in emerging cryptocurrency startups with less than two years of existence and fewer than 10 employees. This series of initiatives marks a strategic shift for U.S. regulators from traditional cautious observation to actively embracing innovation.
Global: Regulatory changes trigger chain reactions.
The shift in U.S. regulatory policy is not an isolated event; it has triggered a series of chain reactions globally, like a domino effect.
In the stablecoin ecosystem, the global stablecoin market is experiencing explosive growth. The latest data disclosed by the Hong Kong Monetary Authority shows that more than 50 well-known corporate institutions are actively applying for stablecoin issuance licenses, including large state-owned energy companies and multinational financial giants like CITIC Group. A considerable number of applicant institutions aim to issue offshore RMB-pegged stablecoins as their ultimate strategic goal, a trend likely to reshape the global cross-border financial landscape. Meanwhile, the domestic development of stablecoins in the U.S. is also strong, with Circle Internet Group's market capitalization successfully surpassing $40 billion, and its issued USDC stablecoin holding a significant position in the global digital finance sector, posing a direct challenge to traditional credit card giants Visa and Mastercard.
The EU has passed the MiCA legislation, setting reserve requirements and circulation limits for stablecoin issuance to reduce systemic risks; Hong Kong will also officially implement its stablecoin regulations in August 2025, establishing a licensed issuance system. These measures mark the gradual exit of stablecoins from the 'regulatory gray area' into the compliance stage of 'licensed operation.'
The global stablecoin landscape is also undergoing structural changes. Non-dollar pegged solutions are emerging, with local currency stablecoins launched in Southeast Asia, Latin America, and other regions, promoting the formation of a 'multicurrency, multiscenario, multipolar' ecosystem. China is also actively promoting the cross-border use of the digital yuan, exploring stablecoin paths pegged to the yuan, while Hong Kong has taken the lead in establishing a dual-anchor structure of RMB + RWA, expanding the internationalization possibilities of stablecoins.
New opportunities in the industry: Deep integration of traditional finance and cryptocurrency.
With the improvement of the policy environment, the cryptocurrency sector has welcomed many new opportunities, particularly the trend of deep integration between traditional finance and cryptocurrency.
Fidelity has submitted documents to regulators planning to amend its spot Bitcoin ETF rules to allow physical redemption and creation mechanisms. This innovative move will further lower the participation threshold for institutional investors and promote deep integration between traditional finance and the cryptocurrency market. Licensed cryptocurrency exchanges in Hong Kong are also actively preparing to provide one-stop financial services for institutional investors, including license upgrades, stablecoin services, RWA (real-world assets), and tokenization. With the Hong Kong stablecoin regulations officially coming into effect on August 1, competition in the digital asset market in Asia will become even more intense.
RWA, as the most promising new 'underlying asset' behind stablecoins, is becoming a new mainstream choice. Simply put, RWA involves mapping real-world assets, such as houses, bonds, electricity, carbon emission credits, etc., onto the blockchain using technology, turning them into tradable digital assets. Hong Kong has piloted RWA as a 'high-quality anchor' direction, promoting the tokenization of assets like green bonds and electricity rights, integrating them into the stablecoin system. According to public data, by June 2025, the global RWA market size is expected to reach $24.4 billion, accounting for 10% of the total market value of stablecoins, with significant growth potential ahead. Boston Consulting Group predicts that by 2030, the RWA market could grow to $16 trillion, becoming the 'foundation' of the stablecoin ecosystem.
In addition, there are reports that U.S. President Donald Trump is about to sign an executive order allowing 401(k) retirement plans to invest in alternative assets such as cryptocurrencies, gold, and private equity funds. This move will expand the investment options of 401(k) plans, introducing more long-term capital into the cryptocurrency market and further promoting its integration into the financial mainstream.
Challenges remain: compliance and risk management are still key.
Although the shift in policy direction has brought many benefits, the cryptocurrency sector still faces numerous challenges, and compliance and risk management remain critical to the industry's development.
In terms of anti-money laundering (AML) and consumer protection, the industry still needs continuous improvement. Future regulation will focus on 'risk-based management' rather than blanket bans, and the global crypto market may follow the U.S. in shifting towards 'balanced regulation,' seeking a new balance between innovation and stability. If virtual currency transactions are used for money laundering, terrorist financing, or currency evasion, regulators have the authority to impose penalties according to the law. Banks must also promptly identify and report suspicious transactions based on their warning systems when implementing foreign exchange management.
Regulatory standards for stablecoins are not yet unified across countries, and cross-border use often encounters legal or compliance barriers. This somewhat limits the widespread application and circulation of stablecoins globally. The high volatility of the cryptocurrency market also poses significant risks to investors, and how to protect investors' rights amid market fluctuations is an important issue the industry must face.
The shift in the cryptocurrency policy landscape has brought new vitality and energy to the industry, along with a series of challenges. Driven by favorable policies, the cryptocurrency market is likely to enter a more regulated and healthy development phase, but industry participants must remain vigilant and proactively address challenges related to compliance and risk management, seizing opportunities for sustainable development.
