Written by: Stellaris Translated by: Vernacular Blockchain

For many years, cryptocurrencies have been the battlefield between innovation and regulation. The White House Crypto Summit should be a pivotal moment—makers, financial leaders and blockchain advocates gather to discuss the future of American digital assets.

Surfaced by market turmoil and regulatory uncertainty, the industry expects this summit to bring a clear direction. But is this a moment of clear guidance or another show without substance?

More interesting is that the crypto market rebounded slightly in the days before the summit. Some believe this is because of the new stablecoin regulation, while others attribute it to hoarding by institutional investors and signals from the Federal Reserve. So, what exactly happened at the crypto summit? Did it really drive the market, or did it just happen to catch up with a natural recovery? 1. Expectations and reality In the weeks before the summit, the makers had said that a comprehensive regulatory framework for stablecoins and digital assets would be discussed. Rumors include restrictions on decentralized finance (DeFi), clear taxes, and the possibility of U.S. central bank digital currency (CBDC).

This is a critical moment for the industry. Will regulators acknowledge that cryptocurrencies are part of the financial system or continue to be skeptical?

What actually happens: partial progress, more uncertainty

Progress in regulation of stablecoins: The Senate Banking Committee has passed the GENIUS Act, aiming to incorporate stablecoins into the traditional financial system.

Bitcoin and DeFi are ignored: Despite the expectations of the outside world, the summit has barely mentioned Bitcoin regulation, staking protocols or decentralized finance (DeFi).

No administrative action taken: Unlike previous regulatory meetings, this summit has neither introduced new restrictions nor provided a clear path for widespread adoption of cryptocurrencies.

Stablecoins have received regulatory attention, but the entire crypto industry is still in a state of uncertainty.

2. What is itThis caused the crypto market to collapse? Is the recovery coming? The week before the summit, the crypto market suffered a heavy blow. Bitcoin fell 25% from its all-time high, and other altcoins also plummeted. So, what exactly caused this collapse?

Several factors together led to a downward trend in the market:

Institutional liquidation: After Bitcoin reached its historical high, large investors took profits, and the selling pressure triggered a chain reaction.

interest rate: Fed's remarks on inflation and economic tightening have disturbed the market.

Regulatory uncertainty: Concerns about large-scale regulatory crackdowns have exacerbated market volatility.

3. Will cryptocurrencies rise?

Although fear has dominated the headlines, signs of more optimism are emerging. Signals of recovery are beginning to appear slowly but explicitly:

Institutional interest in stablecoins: Large financial institutions such as Bank of America and PayPal are investing in blockchain-based payment systems.

Bitcoin market share expands: As traders exit the riskier altcoins, the market share of Bitcoin increases.

No major regulatory suppression: Unlike previous events that caused sales due to supervision, this summit is relatively neutral and market sentiment has been restored.

While the summit itself is not a cause of recovery, progress in stablecoin regulation helps maintain this trend.

4. Strategic Bitcoin Reserves — Will cryptocurrencies support?

Imagine a world where Bitcoin is held like gold. Some and institutions have begun to do this: El Salvador has set bitcoin as fiat currency and hold it as a reserve asset.

Private companies such as MicroStrategy invest billions of dollars in betting on Bitcoin as the "digital gold" of the future.

What about the United States? So far, the United States has been reluctant to formally recognize the status of Bitcoin.However, the idea gained more attention when President Trump signed an executive order to establish a “strategic Bitcoin reserve” that formally positioned Bitcoin as a reserve asset.

However, the United States is currently focusing on easy-to-regulate stablecoins. Is the United States too cautious about supporting Bitcoin, or is this trend inevitable?

Although MicroStrategy and some bet on Bitcoin, the United States is still cautious and prefers stablecoins.

5. Stablecoins vs Cryptocurrency

Unlike the characteristics of Bitcoin fluctuating violently due to market speculation and macroeconomic signals, stablecoins are designed to maintain a fixed value—usually pegged to fiat currencies such as the US dollar. This price stability is more attractive in traditional financial environments, as predictability and compliance are key.

Stablecoins have several application scenarios in the real world:

Institutional transactions: Financial institutions and financial technology platforms use stablecoins to achieve faster and cheaper settlements without relying on cryptocurrencies with higher volatility.

Regulated financial products: Banks and payment providers are starting to try to include stablecoins in regulated digital products.

Cross-border payment: Through stablecoins, international transfers can be completed almost instantly, and the cost is much lower than that of traditional SWIFT systems.

Why are stablecoins more popular? Although Bitcoin has always represented decentralization and monetary freedom, stablecoins are being favored by regulators and institutions. What is the reason? Because they provide the benefits of blockchain without the trouble of price fluctuations.

Treat it as a "controllable" cryptocurrency: unlike Bitcoin that is not controlled by institutions, stablecoins can be monitored, suspended or restricted, making it easier to integrate into a regulated financial framework.

They can be taxed, audited, and even supported by reserves. This opens the door to large-scale adoption of banks and businesses.

The GENIUS Act aims to incorporate stablecoins into the banking system and treat them as digital cash rather than speculative assets. If passed, this could be the first bridge between decentralized finance and traditional institutions.

In short, stablecoins are becoming the preferred entrance to blockchain, and Bitcoin has always been an alternative to decentralization. 6. What happened to cryptocurrencies?

Not immediately collapsed: Despite concerns about excessive regulation, the crypto market did not collapse after the summit. Many assets even achieved moderate increases.

More stablecoins regulation is coming: Legislators have made it clear that stablecoins are the first step in integrating cryptocurrencies into the financial system, meaning stricter rules may be on the way.

Bitcoin is unregulated to touch: Although Bitcoin is at the center of the crypto narrative, it is hardly involved in the formal outcome of the summit.

CBDC may become a priority in the long run: As interest in central bank digital currencies increases, the United States may accelerate the development of its own CBDC to maintain control of currency in the digital future.

Institutional adoption of stablecoins increases: banks, fintech companies and even traditional financial giants have begun to integrate stablecoin infrastructure to promote wider adoption.

The legal framework for encryption is still unclear: although the discussion has begun, the United States has not yet formed a unified crypto regulatory structure, and projects, investors and even regulators are still exploring in uncertainty.

7. Summary

This summit is not a mere performance, but it is also far from a game-changing event. It has pushed cryptocurrencies into the spotlight, but most core questions remain unanswered due to a lack of bold action or clear direction.

A few days after the summit, President Trump delivered an important speech at the Digital Assets Summit in New York City, reaffirming his stance in supporting cryptocurrencies and pledging to build the United States into an "undisputed Bitcoin superpower." His remarks add weight to the broader narrative—cryptocurrencies are becoming a core part of the U.S. economy and agenda.

The market is recovering. Bitcoin and other assets have begun to rebound before the summit, thanks to improved sentiment, technical factors and signs of institutional buying. The summit may have enhanced optimism, but it is not the direct driving force for the rebound.

Investors should focus on actual regulatory progress rather than relying solely on PR-driven events. While public speeches and summits can attract attention, real changes—such as stablecoin legislation or tax clarity—are the key to driving the market in the long run.