Old Wang, a seasoned player in the A-share market for nearly twenty years, talks incessantly about price-to-earnings ratios, moats, and value investing. Three years ago, if you mentioned Bitcoin to him, he would shake his head like a rattle drum, spitting out two words: 'scam.' At dinner parties, he would speak in a tone of an elder admonishing a younger person, seriously telling you that it has no 'fundamentals' and is purely a game of fooling others, destined to end in chaos. However, at the most recent gathering, after a few drinks, Old Wang pulled out his phone and mysteriously began researching how to buy crypto: 'What’s the code for that Bitcoin ETF from BlackRock? And what exactly is that Meme they’re talking about?'
With BTC reaching new highs and ETH breaking through, the previously isolated 'traders' of cryptocurrencies and stocks are starting to intermingle—crypto enthusiasts are busy breaking out of their circles and more frequently discussing consensus and value with outsiders, perhaps feeling that this matter is finally worthy of broader understanding; meanwhile, there are also many in the stock market quietly eyeing BTC and ETH, claiming to 'just take a look,' but in reality, they have already allocated a little.
This wave did not arise suddenly. On one side, the White House, Wall Street, and regulatory agencies are starting to engage directly; on the other side, crypto companies are actively discussing compliance and cooperation. After BTC surged to a new high, the invisible barrier between the crypto and traditional markets is visibly loosening—beginning a two-way breaking of walls. So who exactly is influencing whom now? Is it the crypto circle attempting to push the crypto narrative into the mainstream? Or is the traditional industry beginning to re-understand Web3?
1. Outsiders want to come in: Wall Street, the White House, and institutions are all getting involved.
This year's changes are quite evident. It's not that insiders are heating things up, but rather that hands from the outside are reaching in one by one. Capital is making bets, policies are loosening, and votes are tilting—this group of 'outsiders' is clearly not here to just watch; they intend to participate. Moreover, they are not as urgent as before but have suddenly begun to accelerate.
You may not have bought crypto, but the stocks you own are likely already dancing along with the 'crypto circle.' On July 16, during the night trading session of the US stock market, cryptocurrency concept stocks collectively surged, with GAME soaring by 40%, BTCS rising over 17%, SBET up more than 16%, BMNR up over 12%, UPXI rising more than 8%, BTBT increasing nearly 7%, and BTCM rising 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 have now become the 'leading brothers.'
Politics is also not to be neglected. Trump has maintained a positive attitude toward cryptocurrencies during his campaign and presidency, publicly stating his intention to make the U.S. the 'crypto capital.' After winning, he promptly signed an executive order 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,' which may seem like a gimmick but actually reflects a genuine policy shift. Meanwhile, Congress has not been idle. Recently, Washington welcomed 'Crypto Week'—Congress is intensively advancing various crypto legislations, including a stablecoin regulatory framework (GENIUS Act), an overall framework for regulating crypto assets (CLARITY Act), and a bill prohibiting the U.S. from creating a central bank digital currency (anti-CBDC surveillance state act). Although these bills have yet to come into effect, they have at least entered the formal process, indicating that the crypto industry is no longer being pulled back and forth in a 'gray area,' but is moving toward a clearer direction.
Traditional finance does not lack an understanding of the value of crypto; it simply previously lacked a sufficiently stable policy outlook. Once this uncertainty is diminished, their entry speed will be much faster than you think. For instance, internet brokerages familiar to Chinese investors, such as Tiger Brokers, Guotai Junan International, and Futu, have already begun testing crypto asset trading services; Standard Chartered announced in July the launch of a digital asset platform aimed at institutional clients, focusing on physical delivery of Bitcoin and Ethereum rather than derivatives, becoming the first major bank in the world to do so. If you think this is just a single breakthrough by a few institutions, then you underestimate the power of the trend. Additionally, the CEO of Citigroup confirmed during the second-quarter earnings call that they are studying the launch of a 'stablecoin' for internal settlements and customer trading; JPMorgan launched JPM Coin for inter-institutional payments back in 2020 and has since collaborated with Coinbase to develop a 'quasi-stablecoin' token named JPMD, facilitating large institutions to hold their deposits directly on-chain. Even JD.com has publicly entered the space.
Even more impressive, public companies are also getting FOMO (Fear of Missing Out) and heavily 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, and its total Bitcoin holdings now exceed 600,000 units, worth approximately $73 billion at current prices, showcasing astonishing profitability. MicroStrategy's CEO Michael Saylor tirelessly promotes Bitcoin in various settings, viewing it as the best tool to combat inflation and store value. Following MicroStrategy's lead, more public companies are beginning to follow suit: for example, American gaming company SharpLink Gaming announced that it would use Ethereum as its main reserve asset, planning to purchase about 74,600 ETH between June and July 2025. As of July 17, 2025, its total holdings have reached approximately 321,000 ETH, making it the public company with the largest Ethereum holdings in the world. SharpLink even raised $413 million through a stock issuance, nearly all of which has been invested in Ethereum, with 99.7% of its holdings staked for returns.
Traditional capital is now entering in a straightforward manner. For many traditional users, directly purchasing and holding cryptocurrencies still comes with barriers and concerns, but ETFs solve this problem, allowing traditional capital to enter the crypto market compliantly. In early 2024, the U.S. SEC approved the first batch of Bitcoin spot ETFs, including those from major Wall Street firms like BlackRock and Fidelity, all queuing up to launch their own Bitcoin ETFs. These ETFs allow users to trade cryptocurrencies like Bitcoin in their securities accounts just like buying and selling stocks. In July 2025, the U.S. welcomed the first batch of Ethereum spot ETFs, essentially turning on the 'faucet' of traditional finance.
2. Insiders want to break out: crypto giants cross over to the mainstream, relying on RWA to connect with the US stock market.
In contrast to the active entry of external forces into the crypto sector, 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 of brands and ecosystems, allowing crypto elements to appear in traditional sports and entertainment scenes; second, global compliance arrangements to acquire licenses and qualifications in various regions, integrating into the mainstream financial system.
Crypto companies are actively seeking to break out of their small circles, and 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 arenas… wherever there are many people and high traffic, crypto pioneers go there. For example, OKX sponsors the McLaren F1 team while putting their logo on Manchester City players' jerseys; even in the F1-themed movie starring Brad Pitt, the racing suit he wears and the car he drives both feature their logo. Coinbase spent heavily on advertising during the Super Bowl, and Crypto.com secured the naming rights to the Lakers' home arena… The intent behind these cross-industry marketing efforts is clear: to let 'crypto brands' break free from internal self-indulgence and enter the mainstream recognition system.
To truly break out, merely relying on brand exposure is not enough; it is more important to gain mainstream trust and regulatory recognition. Therefore, major crypto giants have been investing resources in recent years to apply for compliance licenses in major global markets, building a legal operating framework. Coinbase has been a long-standing leader in compliance efforts. It went public on NASDAQ in 2021, becoming the first publicly listed crypto trading platform, backed by years of solid compliance investment—obtaining MSB licenses in multiple U.S. states, a BitLicense in New York, MiCA licenses in Europe, and FCA registration in the UK; its compliance network is already well established. Additionally, OKX is also one of the trading platforms making the most aggressive strides. At the start of 2025, it reached a settlement with the U.S. Department of Justice to clear historical baggage, laying the groundwork for its return to the U.S. market, and has successively obtained high-value licenses like VARA in Dubai, MPI in Singapore, and MiCA licenses in the EU, effectively opening up compliance access in major markets in the Asia-Pacific and Europe and the United States.
Many trading platforms that started with the Web3 wave are now also working to fill compliance gaps. Although they are not the first batch of compliance enthusiasts, their stance has changed and their direction has become clear. This is not just about legal operation; it represents a new watershed: platforms that can run far are competing not with marketing tactics, but with their ability to operate under regulation. Those with licenses can join the traditional financial table; those without licenses can only remain in the circle.
In addition to gaining points through branding and licensing, the cryptocurrency industry itself has not been idle; products like OKX Wallet are working hard to open Web3 access, allowing ordinary users to not just hear about concepts but to truly use blockchain services easily. The most typical example is that more and more crypto protocols are starting to promote the development of RWA (Real World Assets), allowing you to buy and sell traditional financial assets like Tesla and Nvidia stocks or bonds on-chain. This is not just an innovation in gameplay but is opening the door for more global users to fairly participate in traditional finance. In the past, buying US stocks required cumbersome processes and procedures, but now with on-chain tokens, many crypto users can easily enter the market.
The cryptocurrency 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 gap between reality and the virtual world. These efforts have already begun to show results—now, when you walk in Times Square in New York or on the streets of London, you can see advertisements for crypto companies; ordinary people can also easily access decentralized financial services through mobile wallets.
3. When the crypto circle meets the US stock market, who will change whom?
When the crypto circle meets the US stock market, a question quietly becomes important: Is the crypto circle trying to push the crypto narrative into the mainstream? Or is the traditional industry beginning to re-understand Web3?
The cryptocurrency industry discusses 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 assets without the need for banks, directly challenging traditional banking. Similarly, stablecoins, as the 'digital cash' of the crypto world, have begun to shine in cross-border payments and trade settlements. These illustrate 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 traditional institutions' operating hours and entry barriers. It is foreseeable that the underlying architecture of future financial systems may gradually become blockchain-based.
While crypto attempts to change traditional finance, traditional forces are also profoundly changing crypto. The most obvious change is regulatory intervention: governments and financial regulatory agencies worldwide are intensifying efforts to formulate regulations for cryptocurrencies, integrating them into existing regulatory frameworks. Furthermore, the large-scale entry of traditional capital may also change the power dynamics in the crypto space. When Wall Street giants become the largest holders of Bitcoin, and when the boards of public companies decide to include Ethereum on their balance sheets, the pricing power and discourse of the crypto market will have shifted to traditional institutions to some extent. This is somewhat ironic for the original advocates of decentralization and anti-authority in crypto idealism, but it is an inevitable process that the industry must go through to achieve mainstream status.
For the cryptocurrency industry, gaining traditional recognition means a larger user base and a bigger pool of funds; for traditional finance, absorbing crypto innovations can improve efficiency and expand business boundaries. Therefore, rather than saying who breaks through whom, it is more accurate to say that we are entering a new stage of mutual integration. Two keywords run through this integration process: innovation and compliance. Only by insisting on 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 the existing system. Both aspects complement each other and are indispensable.
On one hand, innovation is the fundamental driving force for breaking the deadlock. Since its inception, the cryptocurrency industry has relied on continuous technological and model innovations to drive development. From Bitcoin's decentralized ledger to Ethereum's smart contracts, to the emergence of new concepts like DeFi, NFT, and DAO, each innovation expands the industry’s boundaries and attracts new participants. At the current stage, the industry needs truly disruptive killer applications. This could be a brand new financial service model that renders traditional finance obsolete; it could also be a platform that connects the real world, making ordinary people's daily lives more convenient through blockchain. For example, if ordinary people can easily complete cross-border payments using stablecoins and receive them in seconds at almost no cost, then traditional remittance services would need to innovate, and a large number of outsiders would naturally flow into the crypto ecosystem. Alternatively, when blockchain-based identity verification and data-sharing mechanisms are widely applied, people will no longer need to repeatedly submit cumbersome proof materials, and efficiency will greatly improve, so even if these users do not trade cryptocurrencies, they will 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 of its circle, it must solve the trust issue, and compliance is the key to building trust. In recent years, we have seen too many chaotic situations caused by a lack of regulation: trading platforms running away, Ponzi schemes, hacker attacks, and losses, etc. These events have not only harmed investors but have also created a negative impression of cryptocurrencies in traditional society. Therefore, the industry must actively embrace regulation, improving transparency and accountability. Fortunately, an increasing number of crypto enterprises have realized this. They are actively applying for licenses, improving risk control systems, and cooperating with regulatory bodies to combat illegal activities. This shift is gradually alleviating concerns of mainstream institutions and the general public, making them willing to try engaging with crypto services. Compliance has restrained some 'wildness,' allowing the crypto circle to run more steadily and further.
When Wall Street banks no longer observe with indifference, when public companies treat ETH as cash flow, and when regulators begin to 'lay tracks' for the industry, you can no longer view the crypto world of 2025 with the perspective of 2020. The bubble may still exist, but the consensus has been rewritten by a different crowd: traditional banks are starting to provide crypto custody and trading services, and crypto trading platforms are obtaining banking licenses to conduct deposit and loan businesses; stocks, bonds, and other assets are being issued and traded on the blockchain, while cryptocurrency ETFs and futures become part of mainstream investment portfolios. Users can freely switch configurations between crypto assets and traditional assets, with technology ensuring 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.
