The Federal Reserve is becoming an invisible driver of the crypto asset industry. It sounds like a joke, but it’s reality.

There is big news in the financial world in 2025—the Federal Reserve officially canceled the pre-approval system for bank crypto businesses in April, marking the end of the two-year "New Activity Supervision Plan." On the surface, it appears to be a regulatory detail adjustment, but in reality, it signals that the large-scale entry of traditional banks into the crypto market has already begun.

Anyone paying attention since 2017 understands what this means. Crypto assets are no longer businesses hiding in the shadows; they are now officially entering the mainstream, becoming a main sector that banks can openly operate in. The regulatory approach has shifted from "strict containment" to "standardized guidance," a change in attitude that exceeds expectations.

Even more explosive is Federal Reserve Board member Christopher Waller’s proposal at the "Payment Innovation Conference"—allowing qualified crypto institutions to directly connect to the Federal Reserve’s payment system to settle transactions within 1 second. It sounds like cutting-edge technology, but it’s essentially giving crypto assets a "passport" to enter the financial system.

With such a policy shift, there are naturally big strategic moves behind it. The friendly stance of the Trump administration toward crypto, as seen in the remarks of Kevin Hasset, Director of the National Economic Council—who has publicly supported crypto innovation multiple times and is considered a top candidate to become the next Federal Reserve Chair—indicates a political game at play. Crypto policies have become a new bargaining chip in political struggles.

The boundaries of the financial world are becoming blurred. Banks, the Federal Reserve, and crypto institutions—roles that were once clearly separated—are now beginning to intertwine. This quiet financial revolution is rewriting the entire industry’s way of operating.