Private meetings between Wall Street and the crypto industry are making progress. What's behind this?

According to the latest news, Wall Street and crypto industry leaders have made “progress” in private meetings regarding the crypto legislation. This brief message reflects a profound shift in the US regulatory environment. Based on recent intensive actions by multiple Wall Street institutions, this progress in the meeting may be more significant than it appears on the surface.

Turning Point in the Regulatory Environment

From Confrontation to Dialogue

Over the past year, the relationship between the crypto industry and US regulators has been tense. But recent signals suggest this situation is changing. According to relevant information, the US Securities and Exchange Commission (SEC) has shown a clear shift in attitude after a leadership change — not only withdrawing multiple crypto-related cases but also actively stepping back from several lawsuits. Meanwhile, Congress is rushing to review new crypto legislation to clarify the regulatory framework for tokens and related ecosystems.

This private meeting between Wall Street and crypto industry leaders likely takes place against this backdrop. The “progress” may indicate that both sides have reached some consensus on key issues such as the bill’s specific provisions and regulatory framework.

True Reactions from Institutions

Actions speak louder than words. In recent days, several top financial institutions have accelerated their deployment in crypto assets:

• Morgan Stanley submitted documents to the US Securities and Exchange Commission to apply for ETFs tracking Bitcoin and Solana
• World Liberty Financial applied for a national trust bank license from the Office of the Comptroller of the Currency to support its USD1 stablecoin
• Polymarket signed an exclusive partnership with Dow Jones Media Group, integrating real-time prediction market data into top financial media like The Wall Street Journal
• Multiple institutions are preparing for IPOs in 2026, including Kraken, Consensys, and other crypto companies

These actions are not coincidental but are concentrated entries following clear regulatory expectations. According to relevant data, up to 35% of institutions are “waiting for regulatory clarity” signals before entering the market.

What Does This Meeting Mean

Accelerating the Bill’s Progress

The fact that Wall Street and crypto leaders can achieve “progress” in private meetings suggests that they may have already reached a common stance on key issues of the bill. This is a positive signal for the bill’s final passage. Once the regulatory framework is clarified, a large amount of institutional capital will have a legal basis to enter the crypto market.

Integration of Traditional Finance and Crypto

This meeting itself reflects the convergence of positions between traditional finance and the crypto industry. Wall Street is no longer a bystander or opponent but an active participant. Cases like Polymarket’s partnership with Dow Jones and JPMorgan’s support for Consensys demonstrate that traditional financial giants recognize the value of crypto assets and are prepared for deep involvement.

Accelerating Compliance

From World Liberty Financial applying for a banking license to Kraken and others preparing for IPOs, the entire crypto industry is speeding up its compliance process. The driving force behind this is the growing expectation that the regulatory framework will become clearer.

What to Watch Next

Clarifying the regulatory framework may take several months, but market reactions have already begun. According to relevant information, institutional investors may enter gradually rather than all at once. Although Grayscale’s Ethereum spot ETF experienced a net outflow of $161 million, this might just be reallocating funds among different products, with actual incremental capital still waiting on the sidelines.

Once the new legislation is officially passed and implemented, the following can be expected:

• More traditional financial institutions launching crypto-related products
• A surge in crypto company IPOs
• Large-scale institutional capital entering the crypto market
• Increased linkage between crypto assets and traditional financial markets

Summary

The progress made in private meetings between Wall Street and crypto industry leaders is more than just policy negotiations; it is a concrete reflection of the changing regulatory environment. From the SEC’s attitude shift and legislative progress in Congress to intensive deployment by Wall Street institutions, all signs point to the same direction — the US crypto regulatory framework is gradually becoming clearer, and the integration of traditional finance and the crypto industry is already underway.

This shift is highly significant for the entire industry. For market participants, the key is to understand the logic behind this change rather than follow blindly. Regulatory clarity is a positive development, but the pace of institutional entry may be slower than expected, so investors should prepare accordingly.