Original Author: Pan Zhifou

Lao Wang, an "old hand" who has been navigating the A-share market for nearly twenty years, always talks about P/E ratio, economic moat, and value investing. Three years ago, if you mentioned Bitcoin to him, he would shake his head like a drum and say, "Scam." At a gathering, he would lecture the younger generation in a solemn tone, emphasizing that such a thing lacks "fundamentals" and is purely a foolish game, destined to end in disaster. However, at a recent gathering, after a few rounds of drinks, Lao Wang pulled out his phone, mysteriously started researching how to buy coins: "What's the code for that Belldel Bitcoin ETF? Also, what exactly is that Meme they're talking about?"

With BTC hitting a new high and ETH breaking through, the previously isolated "crypto party" and "stock party" have started to permeate each other—those in the crypto world are busy breaking barriers, speaking more frequently about consensus and value to outsiders, perhaps feeling that this matter is finally worth being understood by more people. On the stock market side, many people have quietly set their sights on BTC and ETH, saying "just taking a look around," but they have actually made a small allocation.

This trend did not suddenly emerge. 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 collaboration. After BTC surged to a new high, the invisible barrier between the crypto and traditional markets visibly loosened—a two-way breach began. So who is influencing whom now? Is the crypto world trying to push the crypto narrative into the mainstream? Or is the traditional industry starting to rethink Web3?

1. Outsiders Want In: Wall Street, the White House, and Institutions Enter the Fray

The changes this year are somewhat obvious. It's not just insiders getting excited on their own, but external hands are reaching in one by one. Capital is being deployed, policies are relaxing, and votes are swaying—this group of "outsiders" clearly aren't here to just watch, but are intending to participate. And it's the kind of participation that wasn't so urgent before but has suddenly accelerated now.

You may not have bought coins, but the stocks you own have very likely danced with the "crypto crowd." On July 16, during the US stock after-hours session, stocks related to cryptocurrencies collectively surged: GAME skyrocketed by 40%, BTCS rose over 17%, SBET rose over 16%, BMNR rose over 12%, UPXI rose over 8%, BTBT rose nearly 7%, BTCM rose over 5%; these companies either directly hold cryptocurrencies such as Bitcoin and Ethereum or their businesses involve blockchain mining, trading platforms, and more. They were originally peripheral players but have now become the "big brothers" leading the way.

Politics is also taking action. Trump has shown a positive attitude towards cryptocurrency during his campaign and presidency, not only openly stating that he wants the US to become the "capital of crypto," but also signing executive orders immediately after his victory, replacing many regulatory officials who were "anti-crypto." This series of actions has led the media to dub him the "first crypto president," seemingly a gimmick, but behind it is a real policy shift. At the same time, Congress is also not standing still. Washington recently ushered in "Crypto Week"—with Congress intensively advancing multiple crypto-related bills, including the stablecoin regulatory framework "GENIUS Act," the overall framework for regulating crypto assets "CLARITY Act," and the bill prohibiting the US from creating a central bank digital currency, known as the "Anti-CBDC Monitoring Act." Although these bills have yet to be finalized, they have at least entered the formal process, indicating that the crypto industry is no longer being pulled back and forth in the "gray zone" but is moving clearly in a certain direction.

Traditional finance does not fail to see the value of cryptography; it simply previously lacked a stable enough policy outlook. Once this uncertainty was weakened, their adoption rate is much faster than you'd think. For example, Chinese familiar internet brokers such as Tiger Brokers, Guotai Junan International, and Futu have already been exploring cryptocurrency trading services. Standard Chartered Bank announced in July the launch of a digital asset platform for institutional clients that does not deal with derivatives but focuses on physical delivery of Bitcoin and Ethereum, making it the world's first major bank to do so. If you think this is just a breakthrough for some institutions, then you underestimate the power of the trend. In addition, Citigroup's CEO confirmed during the second-quarter earnings call that they are researching the launch of a "stablecoin" for internal settlements and customer transactions; JPMorgan Chase already introduced the JPM Coin for interbank payments in 2020 and this year collaborated with Coinbase to develop a "quasi-stablecoin" token called JPMD, making it easier for large institutions to hold the bank's deposits directly on-chain. Even JD.com has openly entered the field.

Furthermore, public companies have also FOMOed and heavily invested in cryptocurrency. The most typical example is the world's largest independent BI company—MicroStrategy. Starting in 2020, they have been "buying the dip" and now hold over 600,000 bitcoins, which is approximately $73 billion at the current price, showing remarkable profitability. MicroStrategy's CEO, Michael Saylor, has spared no effort to promote Bitcoin in various venues, seeing it as the best tool to combat inflation and store value. With MicroStrategy leading the way, more and more public companies are following suit; for example, the U.S. gaming company SharpLink Gaming announced that Ethereum would be its primary reserve asset, buying around 74,600 ETH between June and July 2025 and accumulating a total of about 321,000 ETH by July 17, 2025, making it the largest Ethereum holder among public companies globally. SharpLink even raised $413 million through stock issuance, almost all of which was invested in Ethereum, with 99.7% of the holding staked to earn rewards.

Traditional funds are now entering the market in a formal way. For many traditional users, direct purchase and custody of cryptocurrencies still pose barriers and concerns. ETFs have addressed this issue, allowing traditional funds to enter the cryptocurrency market compliantly. In early 2024, the U.S. SEC approved the first batch of Bitcoin spot ETFs, and a slew of Wall Street giants including BlackRock and Fidelity lined up to launch their Bitcoin ETFs. These ETFs allow users to trade cryptocurrencies like Bitcoin in their brokerage accounts just like stocks. In July 2025, the U.S. welcomed the listing of the first batch of Ethereum spot ETFs, effectively turning on the "tap" of traditional finance.

2. Insiders Breaking Out of the Circle: Crypto Giants Venturing Beyond the Crypto Realm, Connecting to Real-World Assets to Access US Stocks

In contrast to external forces entering the crypto field, there is also an active effort within the crypto industry to break out of its own circle, attempting to expand influence from the crypto community to the broader mainstream world. This is mainly manifested in two aspects: first, through cross-industry collaborations to bring crypto elements into traditional sports, entertainment, and other scenarios; second, through global compliance initiatives to obtain licenses and qualifications from various regions, integrating into the mainstream financial system.

Crypto companies are exploring various ways to step out of their niche, with the most direct approach being to leverage mainstream entertainment and sports events to appear on the international stage. Wherever there is a large audience and high traffic—such as F1, the English Premier League, Hollywood movies, NBA games—the pioneers of the crypto world make their presence known. For example, while OKX sponsors the McLaren F1 team, its logo also appears on the jerseys of Manchester City players; even in an F1-themed movie starring Brad Pitt, the racing suit he wears and the car he drives feature their logo. Coinbase once invested heavily in advertising during the Super Bowl, and Crypto.com directly secured the naming rights for the Lakers' home venue… Behind these cross-industry marketing efforts, the intention is very clear: to free "crypto brands" from self-isolation within the community and enter the mainstream consciousness.

However, truly breaking out of the circle requires more than just brand exposure; gaining mainstream trust and regulatory approval is even more critical. Therefore, in recent years, major crypto giants have been investing resources to apply for compliance licenses in key global markets and establish a legal operating framework. In this regard, Coinbase is a veteran standard-bearer on the compliance path. In 2021, it went public on the Nasdaq as the first publicly traded crypto exchange platform, backed by its solid years of compliance efforts—MSB licenses in multiple U.S. states, New York's BitLicense, MiCA license in Europe, FCA registration in the UK; its compliance network has long been tightly woven. Additionally, OKX is also one of the most aggressive exchanges in terms of expansion. At the beginning of 2025, it reached a settlement with the U.S. Department of Justice, resolving historical issues to pave the way for a return to the U.S. market and subsequently obtained licenses such as the VARA license in Dubai, the MPI license in Singapore, and the MiCA license in the EU, essentially opening up compliance pathways to the Asia-Pacific, European, and American mainstream markets.

Many exchanges that emerged during the Web3 wave are now also addressing compliance gaps. Although they were not among the first advocates of compliance, their stance has changed, and their direction is clear. This is not only for the sake of legal operations but also marks a new watershed: platforms that can truly go the distance are not competing based on marketing tactics but on whether they can operate under regulatory oversight. Those with licenses can step into the realm of traditional finance; those without licenses can only remain in the niche.

In addition to relying on branding and licensing for credibility, the crypto industry itself has been busy. Products like OKX Wallet have made efforts to bridge the gap to Web3, allowing ordinary users to not just grasp a concept but actually easily use blockchain services. However, the most typical development is that an increasing number of crypto protocols are starting to drive the advancement of Real-World Assets (RWA), enabling you to buy and sell Tesla, NVIDIA stocks on-chain, or traditional financial assets such as bonds. This is not only an innovation in terms of gameplay but also an opening of the door to fair participation in traditional finance for more users worldwide. In the past, buying US stocks required going through processes and dealing with cumbersome procedures, but now, with on-chain tokens, many crypto users can easily enter the market.

The crypto industry is actively pushing forward, striving to break barriers: enhancing brand influence through cross-industry collaborations, gaining mainstream trust through regulatory compliance, and establishing a connection between the real world and the virtual world through product innovation. These efforts have already begun to bear fruit - 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 their mobile wallets.

III. When Cryptocurrency Meets the Stock Market, Who Will Change Whom?

As cryptocurrency meets the stock market, one question has quietly become significant: is the cryptocurrency industry attempting to integrate the crypto narrative into the mainstream, or is the traditional industry beginning to understand Web3 anew?

The crypto industry focuses on on-chain native transaction logic, asset liquidity, and the possibility of open finance, thus reshaping financial infrastructure. For example, the rise of DeFi allows anyone to engage in lending, trading, and asset management without the need for a bank, directly challenging traditional banking services. Additionally, stablecoins, as the "digital cash" of the crypto world, have begun to play a role in cross-border payments and trade settlements. All of this demonstrates the breakthrough of crypto technology in traditional financial infrastructure: transactions can occur 24/7 without interruption, settlements can be completed in seconds, and anyone with an internet connection can participate, no longer constrained by the operating hours and access barriers of traditional institutions. It can be foreseen that the underlying architecture of the future financial system may gradually become blockchain-based.

While crypto is attempting to change the traditional system, traditional forces are also profoundly influencing the crypto industry. The most apparent is regulatory intervention: various governments and financial regulatory bodies are actively formulating regulations for cryptocurrencies, integrating them into existing regulatory frameworks. Furthermore, the massive entry of traditional capital may also alter the power structure of the crypto industry. When Wall Street giants become the largest holders of Bitcoin, and when corporate boards decide to include Ethereum on their balance sheets, the pricing power and discourse power of the crypto market to some extent shift to the hands of traditional institutions. For the initial proponents of decentralization and anti-authority crypto idealists, this may seem somewhat ironic, but it is a process that the industry must undergo to move towards the mainstream.

For the crypto industry, gaining traditional recognition means a larger user base and a bigger pool of capital; for traditional finance, embracing crypto innovation can improve efficiency and expand business boundaries. Therefore, rather than saying who is breaking through whom, it is more accurate to describe this as a new stage of mutual integration. Throughout this integration process, two keywords are always present - innovation and compliance. Only by adhering to innovation can new value and growth points be continuously created, attracting external attention; only by embracing compliance can mainstream trust and support be gained, integrating into the existing system. These two aspects complement each other and are indispensable.

On the one hand, innovation is the fundamental driving force behind disruption. The crypto industry has relied on continuous technological and paradigm innovation to promote its development since its inception. From Bitcoin's decentralized ledger to Ethereum's smart contracts, and to the emergence of new concepts like DeFi, NFTs, and DAOs, each innovation has expanded the industry's boundaries, attracting new participants. At this stage, what the industry needs is genuinely disruptive killer applications. This could be a new financial services model that surpasses traditional finance, or a platform that connects the real world, making people's daily lives more convenient with blockchain. For example, an ordinary person can easily use a stablecoin through a crypto application to complete cross-border digital asset payments instantly and almost fee-free. As a result, traditional remittance services will need innovation, and a large number of off-chain users will naturally enter the crypto ecosystem. Alternatively, when blockchain-based identity verification and data sharing mechanisms are widely used, people will no longer need to repeatedly submit cumbersome proof documents, greatly improving efficiency in handling affairs. 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 disruption. For the crypto industry to truly break through, it must address the trust issue, with compliance being the key to establishing trust. Over the past few years, we have seen too many chaos caused by a lack of regulation: exchange platform exits, Ponzi schemes, losses due to hacks, and more. These events have not only harmed investors but also created a negative impression of cryptocurrencies in traditional society. Therefore, the industry must proactively embrace regulation, enhance transparency, and sense of responsibility. Fortunately, an increasing number of crypto companies have realized this. They actively apply for licenses, improve risk control systems, and cooperate with regulatory bodies to combat illegal activities. This transformation has helped mainstream institutions and the general public gradually dispel doubts and become willing to try crypto services. Compliance restrains some of the "wildness," allowing the crypto sphere to run more steadily and further.

When Wall Street banks are no longer just bystanders, when public companies treat ETH as cash flow, when regulations begin to "lay tracks" for the industry, you cannot view the crypto world of 2025 with the eyes of 2020. While the bubble may still exist, consensus has been rewritten: traditional banks are starting to offer crypto custody and trading services; crypto exchanges are obtaining banking licenses to conduct lending and borrowing businesses; assets such as stocks and bonds are issued and traded on the blockchain; crypto ETFs and futures become part of mainstream investment portfolios. Users can freely switch and allocate between crypto assets and traditional assets, with the technology ensuring that all transactions and settlements take place in a transparent and secure environment. These scenarios are already emerging today and will become more commonplace in the future.

This article is a contributed piece and does not represent the views of BlockBeats

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