Jackson Hole's "encryption moment": How a summit rehearses the new financial order of the United States

Written by: Luke, Mars Finance

As the gentle breeze of August sweeps across the majestic peaks of the Teton Mountains in Wyoming, the global financial community traditionally focuses on one thing: the Jackson Hole Central Bank Symposium. Here, the Chair of the Federal Reserve and central bank governors from around the world discuss the future of monetary policy behind closed doors. However, in the summer of 2025, the script of the old order is quietly being rewritten. Three days before the central bankers arrive, another, more raucous and disruptive event—the Wyoming Blockchain Symposium—has already "occupied" this small town.

The event organized jointly by the cryptocurrency exchange Kraken and Anthony Scaramucci's investment platform SALT is no longer an insular affair for crypto enthusiasts. The list of attendees itself is a shocking headline: two potential successors to Powell at the Federal Reserve, the newly appointed chairman of the U.S. Securities and Exchange Commission (SEC), and Eric Trump, the second son of President Trump.

This is not just a conference, but more like a meticulously planned "coronation ceremony." It marks a fundamental shift in the status of the crypto industry in the United States — from a fringe oddity on Wall Street to a core participant closely connected to the corridors of power in Washington. What this summit reveals is a blueprint for a new financial order in the U.S., drawn by clear regulations, friendly oversight, and massive capital.

Regulatory "Big Bang": A New Code Tailored for Cryptocurrency

For a long time, the cryptocurrency industry in the United States has been struggling in the fog of regulation, constantly facing the sword of Damocles of "regulation by enforcement." The Wyoming Summit of 2025 is convened under an unprecedented clear sky of regulation. The foundation of all this comes from a landmark piece of legislation known in the industry as the "GENIUS Act."

This bill, co-sponsored by Republican Senators Cynthia Lummis and Tim Scott, and signed into law by President Trump, provides the first comprehensive and clear federal regulatory framework for the U.S. stablecoin market. According to an analysis by top law firm Latham & Watkins, the core of the bill is that it clearly defines "payment stablecoins," requiring issuers to hold high-quality cash or cash-equivalent reserves in a 1:1 ratio, and grants primary regulatory authority to banking regulators rather than the SEC. Crucially, it removes these compliant stablecoins from the category of "securities."

"This is a clear runway, not an obstacle course," commented an executive from a stablecoin issuer attending the conference.

If the "Genius Act" addresses the identity issue of stablecoins, then the "Project Crypto" announced by the new SEC Chairman Paul Atkins at the summit brings hope to the broader token ecosystem. Atkins, who is seen as an extremely friendly regulator towards the crypto industry, has completely overturned the hardline approach of his predecessor.

"Our goal is to foster innovation, not stifle it," Atkins stated clearly in his speech. He believes that only a "very small number" of tokens should be considered securities and has committed to providing the market with "bright-line rules." One of the core pillars of his "crypto project" is to allow the emergence of "super-apps" that can simultaneously trade security tokens and non-security tokens, thereby breaking down the barriers of the existing market structure. This marks a shift in the SEC's role from "police" to "market builders."

These two policies - a piece of legislation on stablecoins and a set of regulatory philosophies regarding the token market - together form a complete and growth-supportive regulatory framework, paving the way for a significant influx of capital into the crypto market this summer.

The Federal Reserve's Blessing: From Cautious Skeptic to Proactive Innovator

In the world of regulation, if the SEC is the aggressive forward, then the Federal Reserve (The Fed) is more like the prudent defender, known for its cautious attitude towards financial innovation. However, the remarks made by two Federal Reserve governors attending the summit - Michelle Bowman and Christopher Waller - sent entirely different signals.

Bowman stated in her speech that the U.S. is "at the beginning of what seems to be a significant transformation" and urged regulators to adopt an approach that "supports innovation" rather than being "overly cautious." She revealed that the Federal Reserve has terminated its previous "new activity supervision program" for banks involved in cryptocurrency, a move aimed at providing greater certainty for banks exploring digital assets.

Waller, who is seen as a strong candidate to succeed current Chairman Powell, has taken a more aggressive stance. In a speech about payment technology innovation, he directly cited his previous views: "Decentralized finance (DeFi) is nothing to be afraid of." In his view, the "Genius Act" is an important step for the stablecoin market, helping it to "fully realize its potential." More importantly, he confirmed that the Federal Reserve is actively researching technologies such as tokenization and smart contracts, and believes that "further engagement with industry innovators will greatly benefit the Federal Reserve."

Hearing such positive rhetoric from Federal Reserve officials is akin to a policy earthquake. It indicates that the U.S. central bank no longer views cryptocurrencies merely as risks to be controlled, but rather begins to see them as a technological wave that needs to be understood, and even participated in.

Politics - Industry Alliances: The New Power Forged in Bitcoin Mines

If clear regulation is the soil, then strong political support is the sunlight. This summit vividly showcased the close alliance formed between the cryptocurrency industry and the current Trump administration. The most direct manifestation of this alliance is the deep involvement of President Trump's son, Eric Trump.

Eric Trump is not just a special guest. His role is as the co-founder and Chief Strategy Officer of American Bitcoin. This company aims to become a leading mining enterprise in the United States through its merger with mining giant Hut 8, with its strategic core being the efficient mining using low-cost energy and reserving most of its output as the company's long-term asset.

"I am a staunch supporter of Bitcoin (bitcoin maxi)," Eric stated candidly during a discussion at the summit. He reiterated his prediction that Bitcoin would rise to $175,000 by the end of the year and eventually surpass $1 million. This is not only an expression of personal belief but also represents the Trump family's direct bet on the capital- and energy-intensive industry of cryptocurrency mining.

The deep binding of this first family member with industry interests, combined with legislative support at the Senate level, creates a perfect political closed loop. It is Senator Lummis, a proponent of the "Genius Act," whose home state of Wyoming is one of the most crypto-friendly states in the United States.

Behind this political influence is a significant financial investment. According to public data, political donations and lobbying expenditures by the cryptocurrency industry during the 2024 election cycle reached an astonishing approximately $119 million, making it the second largest corporate political spender after the traditional energy sector. In the first half of 2025, the industry's lobbying expenditures have already exceeded $18.4 million, setting a new historical record. This massive funding ensures that the industry's demands can be clearly echoed in the halls of power in Washington.

Market Frenzy: The "Summer of Stablecoins" and the Rise of Crypto Treasuries

The certainty of regulation and the openness of politics have jointly ignited the market, giving rise to the "summer of stablecoins" as described by Goldman Sachs analysts.

Driven by the incentives of the "Genius Act," the stablecoin market has expanded at an unprecedented pace. As of July 2025, its total market capitalization has surpassed $250 billion. A report from Goldman Sachs predicts that the market cap of USDC alone is expected to grow by an additional $77 billion before 2027.

At the same time, a new corporate strategy is gaining popularity on NASDAQ - "Crypto Treasury Companies." These listed companies raise funds by issuing stocks or bonds, with the primary purpose of purchasing and holding cryptocurrencies like Bitcoin as the core reserves of the company.

According to statistics, by mid-2025, at least 126 listed companies worldwide will collectively hold approximately 820,000 bitcoins on their balance sheets. Just this year, these companies have increased their holdings by more than 157,000 bitcoins, worth over $16 billion. Leaders of this trend, such as MicroStrategy and the newly established American Bitcoin, are proving to Wall Street that bitcoin can serve as a superior long-term store of value compared to cash.

This frenzied market sentiment is driving the total market capitalization of the global cryptocurrency market to exceed 4 trillion dollars for the first time.

Embracing Traditional Finance: "The logic of blockchain is too convincing."

In this cryptocurrency feast, the presence of traditional finance (TradFi) giants is also indispensable. Jenny Johnson, the CEO of Franklin Templeton, hosted a discussion on "Embracing Blockchain," and her views represent a fundamental shift in Wall Street's attitude.

"When you see the advantages of this technology, its logic is so compelling," Johnson said, "this shift will happen very quickly." She emphasized that the real opportunity lies in investing in the underlying blockchain infrastructure that builds the future financial system, rather than just trading the tokens themselves.

This stands in stark contrast to a few years ago when most traditional financial institutions either scoffed at cryptocurrencies or were only willing to offer superficial proxy products like Bitcoin ETFs. Today, giants managing trillions of dollars in assets, from BlackRock to Fidelity to Franklin Templeton, are integrating digital assets into their core businesses with unprecedented depth and breadth.

Conclusion: The Birth of a New Order and Unresolved Mysteries

The Wyoming Blockchain Summit of 2025 will ultimately be recorded in history as a watershed moment. It is no longer a discussion about whether cryptocurrency can survive, but rather a declaration on how to build a new financial world in which it plays a deep role. Here, regulators, politicians, entrepreneurs, and investors have reached a rare consensus: crypto innovation is key for the United States to maintain its global financial leadership.

However, beneath this prosperous scene, the new order has also brought new problems. Critics, especially opposing voices in Congress, point out that the provisions in the "Genius Act" regarding consumer protection, auditing requirements, and preventing monopolies by large tech companies remain weak. They are concerned that an overly lenient environment may sow the seeds for the next financial turmoil and provide new loopholes for illegal financial activities.

As the participants left the fresh air of Jackson Hole and returned to their respective trading floors and offices, they took away not just a few days of meeting minutes, but a powerful sense of certainty. The story of the U.S. crypto industry has opened a new chapter. The question is no longer "if," but "how"—how this emerging and powerful crypto-political alliance will shape the global financial landscape for decades to come, and how the world will adapt to this new era driven by code and consensus.