Recently, the Federal Reserve System of the United States announced the official termination of the "New Activity Supervision Program", a move that has had multiple impacts on the Crypto Assets market.

In the short term, the market response has been relatively calm. Bitcoin has only dropped slightly by 0.8%, and Ethereum has fallen by 3.5%, indicating that investors have anticipated this decision. The Federal Reserve also emphasized that the regular regulatory framework remains effective, thus not triggering speculative buying.

From a medium to long-term perspective, this decision brings four structural benefits:

First, the channel for banks to participate in crypto business has reopened. The compliance threshold for banks to carry out crypto custody, stablecoin issuance, node verification, and other businesses has been lowered. It is expected that large financial institutions will expand or restart related product lines, bringing more fiat currency entry points to the market.

Secondly, institutional custody and market liquidity are expected to improve. Banks can directly provide compliant custody services, reducing institutional reliance on self-custody or overseas exchanges, while creating favorable conditions for the development of Bitcoin spot ETFs.

Thirdly, the issuers of stablecoins will become more diversified. The approval process and capital requirements for banks issuing US dollar stablecoins may become similar to those for traditional deposit business, and it is expected that more "bank-related" stablecoins will emerge, consolidating the position of the US dollar in the blockchain settlement arena.

Finally, the regulatory attitude is becoming normalized. Crypto activities are no longer seen as "abnormal risks"; future policy adjustments may be achieved more through existing macro-prudential tools, increasing the predictability of policies, which is beneficial for attracting long-term institutional funds.

However, this change also brings potential risks. Market concentration may increase, and small and medium-sized crypto enterprises may face higher collaboration thresholds. In addition, if the market overheats, regulators can still conduct adjustments through conventional means, such as increasing risk weights.

Overall, the Federal Reserve's decision has brought new development opportunities to the Crypto Assets market, while also presenting new challenges. Market participants need to closely monitor policy changes and adjust their strategies in a timely manner to seize the opportunities brought by this shift.