To investors,

It has been Crypto Week in Washington DC and it looks like the week is going to end with a bang. Each piece of legislation received the necessary House votes yesterday to move forward in their respective processes.

First up we have the GENIUS Act. This creates the first federal regulatory framework for stablecoins, it sets standards for issuers, and it mandates consumer protections. The GENIUS Act is headed to the President’s desk to be signed later today.

Next we have the CLARITY Act. This creates a reliable framework for digital assets to be categorized as securities or commodities, while clarifying whether the CFTC or SEC has oversight. The House approval means the bill will head to the Senate for a vote.

Lastly, we have the anti-CBDC Surveillance State Act. This prohibits the Federal Reserve from launching a central bank digital currency (CBDC). The goal is to preserve financial privacy and prevent federal surveillance via digital dollars. This CBDC bill is headed to the Senate for a vote as well.

My general take is we are ending up exactly where most people thought we would — lots of drama, but ultimately the bills are going to get passed and signed into law. It is about time. The crypto industry, which has created $4 trillion of economic value, has been operating with a lack of clarity. It is hard to explain how difficult it can be to operate a company or build technology while you are also being pressured by your government.

Every entrepreneur I know wants to do the right thing. They want to follow the rules. The big question for years has been “what are the rules?” Now we are getting answers to that question.

And this clarity is coming at a very interesting time. Wall Street has been heavily embracing bitcoin and digital assets. There are ETFs, public companies, real estate funds, and much more. As this clarity settles in, I would not be surprised to see every financial institution start speed running into the crypto industry.

We know large banks are salivating over the opportunity to create, hold, and use stablecoins. This is the least risky way for them to participate. But we should also expect financial institutions to start lending, yield farming, tokenizing assets, and engaging in any activity that drives revenue, assets and clients. The only caveat is that most large financial institutions have a risk-mitigating posture, so I wouldn’t expect them to punt on altcoins or mimic the degens online.

From my perspective, 2025 is the year that bitcoin and crypto grew up. The government began to embrace it. And the banks across Wall Street realized they needed to play in the industry in a major way. There is still a ton of work to do, but this is what mass adoption feels like. We are about to enter an era of distribution — these financial organizations are going to take bitcoin and crypto assets, package them up in a million different ways, and shove them into every customer portfolio they possibly can.

And yesterday’s legislative wins created the environment for it to happen. The race has now started. Let’s see which financial firms will be the biggest winners going forward.

Hope you all have a great end to your week. I’ll talk to everyone on Monday.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

Wintermute CEO Explains Where Bitcoin & Crypto Demand Is Coming From

Evgeny Gaevoy is the Founder and CEO at Wintermute, and he is on the quest to be become the richest man in the world.

In this conversation we discuss who is buying bitcoin right now, data behind retail and institutions, why ethereum is so popular right now, derivative products, regulation, stablecoins, how Wintermute was started, and future plans for Evgeny.

Enjoy!

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