I firmly believe that this round of the crypto cycle is driven by U.S. government policies.
Early this morning, Trump signed an executive order regarding 401(k) retirement fund investments, allowing a portion of retirement funds to be invested in private equity, real estate, and even digital assets.
After this news, the market immediately welcomed a surge, with ETH breaking $3900 and BTC rising to over $117,000, while various altcoins experienced a wave of increases.
Looking back at the timeline: a few weeks ago, the GENIUS Act was officially passed, paving the way for stablecoin regulation; this month, the SEC also changed its stance, publicly declaring the intention to pursue 'Crypto Everything'.
From stablecoins to DeFi, from on-chain identities to tokenized assets, almost every aspect is being re-integrated into the U.S. regulatory system.
This is not merely a minor adjustment but a redirection of capital structure. The U.S. is doing one thing: incorporating Crypto into the dollar system as the next stage of financial growth engine.
Today, let's first discuss what the U.S. government intends to do. In the next tweet, we'll talk about how we crypto enthusiasts can make money.
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What exactly does the U.S. government want?
It's not about 'opening up trading', nor 'allowing speculation', but rather systematically integrating crypto assets into the U.S.-led financial structure. It sounds abstract, but we can look at some concrete actions.
A crucial step is the passage of the GENIUS Act, which establishes federal law for 'payment stablecoins' for the first time in U.S. history.
The U.S. government has personally defined the model for 'compliant USD stablecoins' and opened the doors to the financial system for it.
This means that stablecoins are no longer a gray patch on-chain but can be included as financial instruments within the monetary policy framework. Stablecoins are backed by government bonds; users can use them for cross-border payments, banks can use them for liquidity management, and even businesses can use them for accounting. It represents a genuine institutional authorization.
At the same time, the SEC has quietly completed a shift in attitude. They have launched 'Project Crypto', aiming not to phase out the industry but to 'bring it under regulation' using the existing legal framework.
They are now willing to acknowledge: not all tokens are securities, and they are preparing to introduce a unified standard.
They are also advancing a significant initiative: bringing on-chain trading platforms, stablecoins, DeFi, and RWA issuance all into a registration framework.
The core of this Crypto Everything plan consists of three things: 1. Unified regulatory standards, 2. Accommodating compliant capital, 3. Providing the on-chain world with a 'controllable role'.
This also means that in the future you might see: legally licensed DeFi protocols, publicly funded RWA issuance platforms, and exchange wallet combinations that can interface with TradFi.
So what the U.S. government truly wants is not soaring coin prices, but to make this on-chain system a productive tool that it can control.
Allow dollars to circulate on-chain, allow securities to be issued on-chain, and allow American-style finance to reconstruct a new round of global order.
This is also why I have always said: the main line of this cycle is not Crypto's self-evolution but the 'Digital Asset Inclusion Plan' personally designed by the U.S. federal government.
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Once the policy was implemented, the market began to move.
From the passage of the GENIUS Act to today's signing of the 401(k) executive order, BTC once surged to $123,000, while ETH saw a monthly increase of 54%, also breaking through $4000 today.
Now let's look at the macro level. In July, U.S. crypto spot ETFs attracted a total of $12.8 billion, setting a new historical high. Among them, bitcoin-related products consumed nearly half, about $6 billion; ETH ETF products were also impressive, with a monthly inflow of $5.4 billion.
BlackRock's Bitcoin Trust IBIT has surged to a management scale of $86 billion, even surpassing some S&P 500 component ETFs.
Traditional financial institutions are also frantically 'taking over on-chain'. BlackRock's on-chain treasury fund BUIDL has seen its management scale rise to $2.9 billion. Mainstream exchanges like http://Crypto.com and Deribit have started accepting it as collateral, indicating that it can now be integrated into the crypto financial system as liquidity.
JPMorgan has upgraded its payment chain Onyx to a brand new on-chain settlement system Kinexys, partnering with clearing giant Marex to conduct the first '7×24 real-time on-chain clearing'.
In simple terms, it means that things which originally took days to settle in the traditional financial system, and could not be moved over the weekend, have been completely integrated into the on-chain world.
Institutions are not 'exploring'; they are treating on-chain operations as serious business.
You can continue to watch KOL speeches, or you can see where the money has already gone. This round of market activity is not driven by narratives but is a result of policies setting the tone, with capital actively finding its liquidity direction.
Capital has already begun to bet on targets that can 'accommodate policies'.
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Finally, I want to say:
The true main line of this cycle is not on-chain, but at the policy level.
After the U.S. began to take over, the parameters of the entire game changed: Tokens need to be able to enter the table, projects need to be audit-cleared, and investors only invest in targets that the system can accommodate.
This cycle is more like a reconfiguration of the capital framework rather than a narrative rotation or token revival.
So you need to think clearly about whether the project you are investing in can be 'accommodated' by the U.S. system.
If it can't, then it is likely just a bubble bounce within the cycle; but if it can, it might be the next line of data on the Federal Reserve's balance sheet.