The Federal Reserve has announced the termination of its new regulatory project for activities established in 2023, which specifically targeted banks' cryptocurrency businesses. Meanwhile, the new chairman of the SEC has launched 'Project Crypto', aimed at strengthening industry guidance. Behind this seemingly contradictory operation lies a significant shift in the U.S. cryptocurrency regulatory policy.
The timing is quite significant. Shortly after Trump took office, the promised crypto-friendly policies began to take shape. The Federal Reserve's closure of the dedicated cryptocurrency regulatory project appears to be a streamlining of institutions, but in reality, it is a loosening for banks. It is important to note that when that project existed, banks had to go through complicated approvals to engage in cryptocurrency activities, with procedures so complex that they deterred participation. Now that the shackles have been removed, banks can embrace the cryptocurrency sector more freely, which is undoubtedly a major boon for the entire industry.
What does the entry of banks mean? It means that professional risk control systems, mature financial products, and a vast customer base will flood into the cryptocurrency market. Imagine when giants like American Bank and Wells Fargo start offering cryptocurrency trading, custody, wealth management, and other services, the incremental funds brought in could conservatively reach a trillion-dollar level. More importantly, the participation of banks will significantly enhance the legitimacy and credibility of crypto assets - perhaps your grandparents don't trust cryptocurrency exchanges, but they will trust the banks where they have saved their money for a lifetime.
The SEC's 'Project Crypto' appears to strengthen regulation, but in fact, it provides clear rules. The new chairman, Paul Atkins, is known for being crypto-friendly, and the core of this project is 'guidance' rather than 'restriction'. Updating custody rules and clarifying trading standards are long-awaited initiatives in the industry. With clear game rules, institutions are more willing to enter the market, just like clear lane markings and speed limits on a highway allow vehicles to travel faster and safer.
This 'combination of looseness and strictness' regulatory strategy is actually clever: on one hand, it reduces unnecessary restrictions to encourage innovation and competition; on the other hand, it provides clear guidance to prevent market disorder. This is a typical American regulatory approach - allowing the 'horses to run' while ensuring they 'don't run wild'. Compared to other countries that either impose blanket bans or are completely laissez-faire, America's precise regulation is more conducive to cultivating a healthy market ecosystem.
The market response has already confirmed this point. After the announcement, bank stocks collectively rose, with Morgan Stanley, Goldman Sachs, and others seeing increases of over 3%; cryptocurrencies also responded by rising, with Bitcoin reestablishing itself at $120,000. This correlation indicates that the market has fully recognized the importance of the policy shift. When the barriers between traditional finance and crypto finance are broken, the two trillion-dollar markets will create a chemical reaction, and this integration could fundamentally change the landscape of the financial industry. It is foreseeable that in the coming years, the U.S. may give birth to a number of crypto banking giants that combine the stability of traditional banks with the vitality of crypto innovation, becoming a new species in financial history.