The Federal Reserve in 2025 is doing something that was once unimaginable — it has quietly shifted from a rate regulator to a participant in crypto infrastructure.

While everyone is still pondering the Fed's next rate cut, its moves have already reached into the crypto world. It has abolished prior approval for bank crypto services, introduced new accounts that allow crypto institutions to directly access the central bank's payment system, and every step is redefining the rules of money and power.

Behind the scenes, there is a massive entity — a restructuring plan involving over $5 trillion in liquidity is underway, with the crypto world becoming a primary destination.

**How policy easing has changed banks' choices**

Last April, the Fed did something that shocked traditional banks: it abolished the crypto business supervision plan that had only been implemented two years prior, so banks no longer need to kneel for approval for each crypto custody or lending project.

JPMorgan, Citibank, and others gained autonomy — as long as they integrate crypto services into their existing risk control systems, they can proceed confidently.

A more critical turning point came in June. The Fed explicitly stated: stop using "reputation risk" as an excuse to block banks. In the past, banks avoided crypto cooperation out of fear of public criticism, but this psychological barrier has now been broken. Banks can now enter the space openly and legitimately.

These changes are not minor tweaks but a reshaping of the entire ecosystem.