The crypto market is facing a significant turning point: clearer regulations and the wave of institutionalization of ETH are coming.

Recently, the crypto market has welcomed two major catalysts: the legislative push of the "Cryptocurrency Week" in the United States and the intensive emergence of institutional layouts in Ethereum, together forming the industry's "policy inflection point" and "capital inflection point." The deep logic of this cycle is shifting from Bitcoin to Ethereum, stablecoins, and on-chain financial infrastructure. The clarity of U.S. policies and the institutional expansion of Ethereum signify that the crypto industry has entered a structurally positive phase, and the market focus should transition from "price games" to "capturing institutional dividends through rules + infrastructure."

U.S. "Crypto Currency Week": Three Major Bills Release Positive Signals

In July 2025, the U.S. Congress systematically promoted comprehensive governance of encryption assets for the first time through a legislative agenda. This is not only a response to market risks but also a signal of the U.S. competing for dominance in the next round of financial infrastructure.

The "GENIUS Act" establishes a complete regulatory framework for stablecoins, covering key elements such as custody requirements, audit disclosures, asset reserves, and settlement processes. This means that stablecoins will be incorporated into the U.S. sovereign legal structure for the first time. The bill passed the Senate with a strong majority, demonstrating a robust bipartisan support base.

The "CLARITY Act" focuses on the classification of the securities and commodity attributes of crypto assets, aiming to clarify regulatory boundaries. If this act is successfully passed, it will end the long-standing "regulatory gray area" status of crypto assets and provide industry participants with predictable legal grounds.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currency, reflecting Congress's emphasis on financial privacy and market freedom. It sends a signal: the United States does not intend to dominate the digital financial transformation through state monopoly, but rather supports a market-driven, technology-neutral encryption asset ecosystem.

These bills collectively point to "regulation driving innovation", emphasizing "clear boundaries and reducing uncertainty". They are expected to directly impact the removal of barriers for institutional investors, policy confirmation of stablecoin roles, and policy endorsement of compliant exchanges and custodial banks.

From a deeper perspective, this is a strategic response from the United States to the new round of reshaping the financial order. Stablecoins are becoming the vehicle for the digital expansion of the dollar's influence, while Congress is trying to inject institutional legitimacy through regulation. This game of financial geopolitical power layout is also a direct response to China's central bank digital currency and the EU's MiCA regulatory framework.

ETH Institutional Arms Race: Three Lines Advance to Reshape Market Structure

Recently, Ethereum is undergoing a profound restructuring of its market structure. From Wall Street financial giants increasing their ETF positions to listed companies incorporating ETH into their balance sheets, Ethereum is evolving from a highly volatile, high-tech decentralized asset to a mainstream financial asset with institutional-level allocation logic.

Since its launch, the Ethereum spot ETF has attracted a cumulative net inflow of $5.76 billion, with a significant acceleration in the past two months, as several ETF products recorded monthly net inflows exceeding $1 billion. At the same time, multiple listed companies such as SharpLink Gaming and Siebert Financial have gradually included ETH in their balance sheets, marking a new narrative turning point for ETH from "speculative asset" to "strategic reserve asset."

Current institutional participation can be divided into two camps: the "Ethereum Native Camp" represented by SharpLink and the "Wall Street Approach" represented by BitMine. This north-south siege-style institutional accumulation model is causing the value anchor and price support system of ETH to shift towards a mainstream capital framework that is institutionalized, long-term, and structured.

This trend not only affects prices but may also reconstruct the governance rights, discourse power, and ecological dominance of the Ethereum network. Vitalik Buterin and the Ethereum Foundation have recently been vocal, emphasizing technical resilience, security mechanisms, and the principles of decentralization, while also reinforcing the "dual-track" structure of ecological governance mechanisms, aiming to embrace institutional capital while avoiding the concentration of governance power in a single entity.

Market Strategy: BTC builds a high platform, ETH and high-quality application chains welcome a supplementary rise

As Bitcoin breaks through $120,000 and enters a platform period, the crypto market presents a structure of "large market cap platform fluctuations + medium market cap rotation and attack." ETH and a number of L1/L2 protocols that combine narrative and technical support have become the most valuable direction for speculation after Bitcoin.

1. BTC is in the high-level platform construction phase: there is support downwards, but weakness upwards. On-chain data shows a drop in activity, but institutional allocation enthusiasm remains strong, and the subsequent upward pace is expected to slow down.

2. ETH's rebound logic formation: from "lost leader" to "value lowland" revaluation. Institutional funding recognition is increasing, and the technical aspect has broken the downward trend line, starting to establish an upward channel. ETH is re-evaluating its long-term value foundation.

3. The rise of mid-to-high quality application chains: Chains like Solana, TON, and Tanssi are experiencing structural opportunities. These chains possess advantages of "high performance + strong ecosystem + clear positioning," leading to rapid concentration of funds.

4. Market Strategy Outlook: Focus on "Value Rotation" and "Narrative Advancement". Maintain BTC allocation, with ETH as the core of the rotation, and pay special attention to mid-to-high quality public chains and modular protocols, proactively laying out emerging tracks such as DePIN, RWA, AI chain, and ZK.

Conclusion: Clear Regulation + ETH Main Rise, Market Entering Institutional Cycle

The three major bills promoting the "Cryptocurrency Week" in the United States bring an unprecedented period of policy clarity for the industry. At the same time, the strategic reserve arms race of core assets such as ETH is accelerating, pushing the market into a new cycle dominated by institutions. The synergistic effect of regulatory clarity and the revival of mainstream asset values is helping the crypto market break free from the "bull-bear cycle trap" and evolve towards a more stable and sustainable institutional cycle.

The characteristics of a systematic cycle are that market fluctuations are more guided by fundamentals and policy expectations, and asset prices reflect the positive interaction between capital and technology. Deep involvement of institutional capital will improve the market liquidity structure and shift investment strategies towards medium to long-term value investing. At the same time, a diversified market structure and ecological upgrades will reshape investment logic, pushing the crypto industry into a new normal of "technology-driven + rational capital + regulatory support."

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