The crypto market is experiencing a dual catalyst of policies and funds, with ETH entering a peak in institutional arms race.

United States "Crypto Week": Three Major Bills Signal a Value Reevaluation for Compliant Assets

In July 2025, the U.S. Congress systematically advanced comprehensive governance of crypto assets for the first time through a legislative agenda. Against the backdrop of dramatic changes in the global digital financial landscape and challenges to traditional regulatory models, these bills not only respond to market risks but also reflect the intention of the United States to dominate in the next round of competition for financial infrastructure.

The "GENIUS Act" establishes a complete regulatory framework for stablecoins, covering key elements such as custody requirements, audit disclosures, asset reserves, and clearing processes. This means that the stablecoin system, which has long remained outside the traditional financial regulatory framework, will be incorporated into the U.S. sovereign legal structure for the first time. The bill's strong bipartisan support is also reflected in its high vote count in the Senate.

The "CLARITY Act" focuses on the classification of crypto assets as securities or commodities. Its core intention is to clarify which crypto assets are considered securities and which are not, as well as to define the regulatory boundaries between the SEC and CFTC. This will put an end to the long-standing uncertainty in the regulation of crypto assets, providing project parties, exchanges, and fund managers with predictable legal grounds.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currency, preventing the government from establishing real-time surveillance capabilities over individual financial activities through a digital dollar framework. This reflects the U.S. Congress's emphasis on financial privacy and market freedom, and sends a signal that the U.S. does not intend to dominate the digital financial transformation through state monopoly, but rather chooses to support a market-driven, technology-neutral, and openly interconnected encryption asset ecosystem.

These legislative directions point to "regulating to promote innovation," with measures emphasizing "clarifying boundaries and reducing uncertainty." The core demand is no longer "restriction," but rather "guidance." It is expected to bring several direct consequences:

1. The barriers preventing institutional investors from entering on a large scale due to compliance risk concerns will gradually be lifted.
2. The role of stablecoins as "on-chain dollars" will be confirmed by policy, and their usage efficiency will be amplified.
3. Compliant exchanges and custodial banks will receive policy endorsement, reshaping the trust structure of the global crypto market.

At a deeper level, this is the United States' strategic response to a new round of reshaping the financial order. Stablecoins are becoming the carriers of the digital expansion of the dollar's influence, while the U.S. Congress is attempting to inject institutional legitimacy into them through regulatory means. This is a game of financial geopolitical power layout, and it is also a direct response to China's central bank digital currency and the EU's MiCA regulatory framework.

ETH Institutional Arms Race: ETF Entry, Staking Mechanism Transformation, and Asset Structure Upgrade Advancing on Three Fronts

Recently, with the strong rebound of ETH prices, market confidence is gradually recovering. Behind this is a silent new round of "capital arms race" surrounding Ethereum. From Wall Street financial giants continuously increasing their positions through ETF channels to more and more publicly listed companies incorporating ETH into their balance sheets, Ethereum is undergoing a profound restructuring of its market structure.

Since the launch of the ETF, the Ethereum spot ETF has accumulated a net inflow of $5.76 billion, accounting for nearly 4% of its market capitalization. In the past two months, the inflow of funds has noticeably accelerated, with several Ethereum ETF products recording over $1 billion in monthly net inflow. Traditional financial players such as Bitwise, ARK, and BlackRock have clearly increased their holdings.

At the same time, the wave of listed companies "strategic reserve of Ethereum" has emerged. Multiple companies, including SharpLink Gaming, Siebert Financial, Bit Digital, and BitMine, have successively announced the inclusion of ETH in their balance sheets. SharpLink currently holds over 280,000 ETH, surpassing the Ethereum Foundation, becoming the largest single institutional holder of ETH in the world.

The institutional participation structure can be divided into two camps: the "Ethereum Native Camp" represented by SharpLink, which gathers early ecosystem participants like ConsenSys and Electric Capital; and the "Wall Street Approach" represented by BitMine, which directly replicates the Bitcoin reserve logic. This north-south pincer movement institutional accumulation model has caused the value anchor and price support system of ETH to migrate towards a formalized, long-term, and structured mainstream capital framework.

The impact of this trend is not only on the price level but also on the governance, voice, and ecological dominance of the Ethereum network itself, which may face reconstruction. ETH is being revalued, and the market narrative is shifting from the crowded tracks of DeFi and L2 to a new space of "reserve asset + ETF + governance rights."

Vitalik Buterin and the Ethereum Foundation have recently been vocal, emphasizing Ethereum's technological resilience, security mechanisms, and principles of decentralization, while also beginning to strengthen the "dual-track" structure of ecological governance mechanisms, intending to embrace institutional capital while avoiding governance power being controlled by a single entity.

Overall, ETH is undergoing a comprehensive transformation of its capital structure: shifting from a retail-driven open market to an institutional market structure driven by ETFs, listed companies, and institutional nodes. This will not only determine the future construction path of the price center of ETH but may also reshape the governance structure and development rhythm of the Ethereum ecosystem.

Market Strategy: BTC builds a high-level platform, ETH and mid-to-high quality application chains welcome a supplementary rise logic.

As Bitcoin successfully breaks through the $120,000 mark and gradually enters a plateau phase, the structural rotation pattern of the crypto market becomes increasingly clear. With BTC dominating the logic, Ethereum and high-quality application chain assets are beginning to enter a valuation repair period. The current market shows a typical "large-cap platform volatility + mid-cap rotation attack" structure.

1. BTC is entering a high-level platform construction stage: there is support downward, but upward momentum is lacking. Bitcoin has basically completed the main bull market driven by the triple narratives of spot ETFs, halving cycles, and institutional reserves. The current trend is entering a horizontal consolidation phase, and the upward momentum is weakening in the short term.

2. The logic of ETH's rebound formation: from "lost leader" to "value gap" revaluation. The price of ETH has broken through the previous downward trend line, starting to establish an upward channel, and has continuously recovered multiple key technical moving average levels. ETH not only has the advantage of being in a "valuation gap", but also begins to have the institutional recognition and narrative completeness similar to BTC.

3. The rise of high-quality application chains: Chains like Solana, TON, and Tanssi are experiencing structural opportunities. These chains have multiple advantages of "high performance + strong ecosystem + clear positioning," leading to rapid capital concentration in this round of rebound.

4. Market Strategy Outlook:

   • BTC allocation reserve, not the main focus direction
   • ETH as a core rotation configuration target
   • Focus on mid-to-high quality public chains and modular protocols
   • Focus on early layout targets in DePIN, RWA, AI chains, and ZK directions.

The current market has shifted from a single asset-driven phase to a structural rotation phase, with BTC's main upward wave temporarily pausing. The rotation of ETH and high-quality new public chains will become the key driving force in the second half of the market. Strategically, we should abandon the habitual thinking of "chasing high leaders" and shift towards a mid-term trend layout of "valuation rebalancing + narrative diffusion."

Conclusion: Clear Regulations + ETH Main Surge, Market Enters Institutional Cycle

With the advancement of three key bills during the United States "crypto week", the industry has entered an unprecedented period of policy clarity. This clearer regulatory environment not only eliminates years of unresolved compliance uncertainty but also lays a solid foundation for the institutional and formal development of the crypto market. As the strategic reserve arms race accelerates for core assets like ETH, the market is gradually stepping into a new cycle dominated by institutional frameworks.

The synergy between clear regulation and the resurgence of mainstream asset values is driving the crypto market to gradually break free from the previous "bull-bear cycle trap" and evolve towards a more stable and sustainable institutional cycle. A significant characteristic of the institutional cycle is that market fluctuations are increasingly guided by fundamentals and policy expectations, with asset price movements no longer dominated by scattered emotions and regulatory news, but rather reflecting a positive interaction between capital and technology and steady growth.

The regulatory breakthroughs during the "Crypto Week" in the United States and the capital trend of Ethereum's main rise are opening an important chapter for the crypto market to move towards maturity. The market is transitioning from the chaotic "barbaric growth" phase to the institutionalized and standardized "rational development" phase. Investors should seize the institutional dividends and growth opportunities of core assets, actively position themselves in Ethereum and quality application chains, and embrace a healthier and more sustainable new era of encryption.