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

Introduction

This week, the crypto market is greeted by two major catalysts: the legislative push of the "Cryptocurrency Week" by the U.S. Congress and the intensive outbreak of institutional layouts in Ethereum. These two forces together constitute the "policy inflection point" and "funding inflection point" for the crypto industry in the second half of 2025. The deep logic of the current 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 is entering a structural transition phase, and the market allocation focus should gradually shift from "price game" to "rules + infrastructure institutional dividend capture."

U.S. "Crypto Week": Three Major Bills Signal a Revaluation of 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 significant changes in the global digital financial landscape and the ongoing challenges to traditional regulatory models, these bills not only respond to market risks but also reflect the intention of the U.S. to dominate in the next round of competition in financial infrastructure.

The groundbreaking "GENIUS Act" establishes a comprehensive regulatory framework for stablecoins, covering key elements such as custody requirements, audit disclosures, asset reserves, and clearing processes. This marks the first time that the stablecoin system, which has long operated outside the purview of traditional financial regulation, has been incorporated into the U.S. sovereign legal structure. The act's high passage in the Senate also demonstrates a strong bipartisan support base.

The "CLARITY Act" focuses on the classification of crypto assets as securities and commodities, aiming to clarify "which crypto assets are securities and which are not," and to define regulatory boundaries. This will end the long-standing "regulatory gray area" of crypto assets, providing predictable legal grounds for project parties, exchanges, and fund managers.

The "Anti-CBDC Surveillance State Act" prohibits the Federal Reserve from issuing central bank digital currency, preventing the government from establishing real-time monitoring capabilities over individuals' financial activities through the digital dollar framework. This reflects the U.S. Congress's emphasis on financial privacy and market freedom, while also signaling that the U.S. chooses to support a market-driven, technology-neutral, and openly interconnected crypto asset ecosystem.

These bills collectively point to "regulating to drive innovation," emphasizing "clarifying boundaries and reducing uncertainty." Once the legislation enters the implementation phase, the following impacts are expected: the gradual removal of barriers for institutional investors; stablecoins confirmed by policies as the role of "on-chain dollars"; compliant exchanges and custody banks obtaining policy endorsements, reshaping the trust structure of the global crypto market.

From a deeper perspective, this series of legislation is a strategic response by the United States to the new round of reshaping the financial order. Stablecoins are becoming a vehicle for 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 both a game of geopolitical financial power layout and 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, Asset Structure Upgrade Progressing on Three Fronts

Recently, with the strong rebound in ETH prices, market confidence is gradually recovering. Behind this is a new round of "capital arms race" quietly unfolding around Ethereum. 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 cumulative net inflow of $5.76 billion, accounting for nearly 4% of its market value. In the past two months, several ETH ETF products have recorded monthly net inflows exceeding $1 billion, with traditional financial institutions significantly increasing their holdings.

At the same time, the wave of listed companies "strategic reserve Ethereum" has emerged. Multiple companies such as SharpLink Gaming, Siebert Financial, Bit Digital, and BitMine have announced that they will include ETH in their balance sheets. SharpLink currently holds over 280,000 ETH, surpassing the Ethereum Foundation, making it the largest single institutional holder of ETH in the world.

Institutional participation can be divided into two camps: the "Ethereum native camp" represented by SharpLink and the "Wall Street approach" represented by BitMine. This institutional accumulation model is causing the value anchor and price support system of ETH to migrate towards a mainstream capital framework that is institutionalized, long-term, and structured.

In addition, Vitalik Buterin and the Ethereum Foundation have recently spoken out frequently, emphasizing Ethereum's technological resilience, security mechanisms, and principles of decentralization, while also starting to strengthen the "dual-track" structure of ecological governance mechanisms, intending to embrace institutional capital while avoiding governance power being controlled by a single force.

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

As Bitcoin breaks through the $120,000 mark and enters a platform period, the structural rotation pattern of the crypto market becomes increasingly clear. The current market shows a "large-cap platform fluctuation + mid-cap rotation attack" structure, with ETH and a batch of L1/L2 protocols that combine narrative and technical support becoming the most valuable direction for speculation after Bitcoin.

1. BTC is entering a high-level platform construction stage: there is support downwards, but upward momentum is lacking. In the short term, the upward momentum is weakening, but the bottom funding support is still present.

2. The logic of ETH's rebound formation: revaluation from "lost leader" to "value depression". ETH has entered a new cycle of market sentiment switching, becoming the preferred rebound target under capital rotation.

3. The rise of mid-to-high quality application chains: Chains like Solana, TON, and Tanssi are迎来结构性机会. These chains have multiple advantages of "high performance + strong ecosystem + clear positioning," which leads to rapid concentration of funds.

4. Market Strategy Outlook:

• BTC allocation kept as a reserve, not the main focus
• ETH as the core asset for rotation configuration
• Focus on high to medium quality public chains and modular protocols
• Narrative advancement, actively seeking new opportunities at the margin

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 a solid foundation for the institutionalization and normalization of the crypto asset market.

Ethereum, as a leader in the smart contract platform, is迎来主升浪的关键窗口. The combined push of strategic reserve trends and ETF funds marks the beginning of a re-evaluation of Ethereum's value in the capital market.

The opening of the institutional cycle signifies the diversification of market structure and the multidimensional upgrade of the ecosystem. Investors need to pay more attention to the continuous tracking of fundamentals and policies. The regulatory breakthroughs during the U.S. "Crypto Week" and the capital trend of Ethereum's main rise are opening an important chapter for the maturation of the crypto market. Investors should seize the institutional dividends and growth opportunities of core assets, actively layout Ethereum and high-quality application chains, and embrace a healthier and more sustainable new era of encryption.