Recently, Federal Reserve Chair Jerome Powell's attitude towards cryptocurrencies has shown a clear shift. He publicly stated that as long as banks comply with existing regulations and effectively control risks, they are fully supported in exploring the crypto space. He also emphasized a bottom line — that no innovation should undermine the stability of the banking system and the deposit insurance scheme.

The logic behind this attitude is quite clear: regulators are not trying to shut down cryptocurrencies, but rather want to gradually incorporate them into the formal financial system. In other words, establishing a clear set of rules of the game to connect traditional finance with blockchain technology.

From a market perspective, what does this mean? Once policies are implemented, a large number of traditional financial institutions may rush in. The influx of long-term funds driven mainly by institutions will bring qualitative changes to the market — no longer a gamble for retail investors, but a genuine asset allocation at a financial level.

This is definitely positive for mainstream assets like ETH and Bitcoin, but more importantly, it marks the progress of compliance in the entire crypto ecosystem. In the future, those who can innovate on a compliant basis will be able to seize this wave of institutional capital.