Crypto market reaches a significant turning point: U.S. policy breakthroughs and Ethereum institutional layout

I. Introduction

Recently, the crypto market has welcomed two major catalytic factors: the legislative push during Washington's "Cryptocurrency Week" and the intensive outbreak of institutional布局 in Ethereum, which together constitute the policy and funding turning point for the crypto industry in the second half of 2025. The deep logic of this round of the crypto cycle is shifting from Bitcoin to Ethereum, stablecoins, and on-chain financial infrastructure. The clarification of U.S. policies and the institutional expansion of Ethereum signify that the crypto industry has entered a structural positive phase, and the market's focus should gradually transition from price games to capturing the institutional dividends of rules and infrastructure.

2. U.S. "Crypto Week": Three Major Bills Signal That Compliant Assets Will Experience Value Reassessment

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, the introduction of these bills not only responds to market risks but also reflects the United States' intention to occupy a dominant position in the next round of financial infrastructure competition.

The most milestone-significant "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 been outside traditional financial regulation, is for the first time incorporated into the U.S. sovereign legal structure. The strong bipartisan support reflected in the Senate's high vote in favor of the bill also demonstrates a robust foundation.

The "CLARITY Act" focuses on the classification of cryptocurrency assets as securities or commodities, aiming to clarify the regulatory jurisdiction of cryptocurrency assets and define the regulatory boundaries between the SEC and CFTC. If this act is successfully passed, it will end the long-standing "regulatory gray area" of cryptocurrency assets, providing industry participants with predictable legal grounds.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currency, reflecting the U.S. Congress's emphasis on financial privacy and market freedom. This signals that the U.S. does not intend to dominate the digital financial transformation through state monopolization, but instead chooses to support a market-driven, technology-neutral, and open interconnected crypto asset ecosystem.

These bills collectively point to "regulation driving innovation," emphasizing "clear boundaries and reducing uncertainty." After the implementation of the legislation, it is expected to bring multiple impacts, including the removal of barriers for institutional investors, the confirmation of stablecoins as the role of "on-chain dollars," and the endorsement of compliant exchanges and custodian banks by policies.

From a deeper perspective, this round of legislation is the United States' strategic response to a new round of reshaping the financial order, attempting to inject institutional legitimacy into stablecoins through regulatory means, setting standards and gaining discourse power in the future global financial network.

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

Recently, a new round of "capital arms race" surrounding Ethereum has quietly unfolded. From Wall Street financial giants continuously increasing their positions through ETF channels to more and more listed companies incorporating ETH into their balance sheets, Ethereum is undergoing a deep structural reshaping of the market.

Since the launch of the Ethereum spot ETF in July 2024, it has attracted a net inflow of $5.76 billion, accounting for nearly 4% of its market cap. In the past two months, multiple ETH ETF products have recorded over $1 billion in monthly net inflows, with traditional financial institutions significantly increasing their holdings.

At the same time, the上市公司 "strategic reserve Ethereum" wave has surged. Several publicly traded companies have announced one after another that they will include ETH in their balance sheets, marking a new narrative turning point for ETH from "speculative asset" to "strategic reserve asset."

Currently, institutional participation is divided into two major camps: the "Ethereum native camp" represented by SharpLink and the "Wall Street approach" represented by BitMine. This north-south siege-style institutional accumulation model has led the value anchor and price support system of ETH to migrate towards an institutionalized, long-term, and structured mainstream capital framework.

This trend not only affects prices, but may also restructure the governance power, voice, and ecological dominance of the Ethereum network. The Ethereum Foundation has also begun to strengthen the "dual-track" architecture of ecological governance to balance user interests, developer leadership, and institutional compliance.

In summary, ETH is undergoing a comprehensive change in its capital structure: transitioning 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 ETH price center but may also reshape the governance structure and development pace of the Ethereum ecosystem.

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

The current crypto market shows a structure of "large-cap platform fluctuations + mid-cap rotation upward". ETH and a group of L1/L2 protocols that have both narrative and technical support have become the most valuable direction for speculation after Bitcoin.

1. BTC is entering a high-level platform construction phase: there is support downwards, but there is some weakness upwards. BTC ETF still maintains a small net inflow, indicating that bottom support is still present, but the subsequent upward momentum may slow down.

2. The logic of ETH's rebound: from "lost leader" to "value pit" revaluation. The price of ETH has broken through the previous downward trend line and is beginning to establish an upward channel. At this stage, ETH not only possesses the advantage of "valuation pit" but is also beginning to have institutional recognition and narrative completeness similar to BTC.

3. The rise of mid-to-high quality application chains: Chains like Solana, TON, and Tanssi are experiencing structural opportunities. These chains possess multiple advantages of "high performance + strong ecosystem + clear positioning," and are rapidly attracting concentrated funding.

4. Market Strategy Outlook: Focus on "Value Rotation" and "Narrative Shift"

   • BTC configuration reserved, not the main focus direction
   • ETH as a core asset for rotation configuration
   • Focus on high to medium quality public chains and modular protocols
   • Focus on early layout targets in the DePIN, RWA, AI chain, and ZK directions.

V. Conclusion: Clear Regulations + ETH Main Rise, Market Enters Institutional Cycle

As the three key bills of the United States "Crypto Week" advance and the arms race for strategic reserves of core assets such as Ethereum accelerates, the market is gradually entering a new cycle dominated by institutions. This clarification of the regulatory environment lays the foundation for the institutionalization and formalization of the crypto asset market.

A significant characteristic of the institutional cycle is that market fluctuations are more guided by fundamentals and policy expectations. Asset price fluctuations are no longer dominated by scattered emotions and regulatory news, but rather reflect a healthy interaction between capital and technology, and robust growth. The deep involvement of institutional capital will drive improvements in market liquidity structure, prompting investment strategies to shift from short-term speculation to medium- to long-term value investment.

Investors should seize the institutional dividends and growth opportunities of core assets, actively layout Ethereum and quality application chains, and embrace a healthier and more sustainable encryption new era.