Token2049 Observation: The End of the Era of Rebels? The Shift in US Regulation Fuels $35 Billion in Volume, Trump Family Stablecoin Caught in "Conflict of Interest"

In October 2025, the Token2049 Asia Summit in Singapore brought together around 25,000 participants, highlighting that the encryption industry is undergoing a key transformation from "rebels" to "mainstream leaders." Cardano founder Charles Hoskinson stated that the encryption industry "has already won, and now must learn to lead." The core driving force behind this shift is the sharp turn in U.S. regulatory attitudes, which has opened the door to institutional demand. Data shows that the average daily open interest in derivatives on mainstream U.S. CEXs has reached $35 billion. However, the presence of the Trump family's crypto project World Liberty Financial and its $2.6 billion market capitalization USD1 stablecoin, along with its association with the sanctioned Russian entity A7A5, has placed the encryption industry in the midst of unprecedented political controversy and compliance challenges while embracing the mainstream.

From "Rebel" to "Leader": The Dramatic Shift in U.S. Regulation Releases Institutional Demand

Token2049 is a "World Expo" in the digital finance field, and the composition of its participants clearly reflects the trend of the cryptocurrency industry becoming increasingly mainstream - Wall Street banks, fintech giants, political celebrities, and crypto natives gather together.

· Regulatory stance has changed dramatically: Chengyi Ong, Head of Public Policy for Chainalysis in the Asia-Pacific region, pointed out that as the largest financial market in the world, the regulatory developments in the U.S. have received "extraordinary attention." In a very short period of time, the regulatory environment in the U.S. shifted from "hawkish" to "supportive," greatly releasing the suppressed institutional demand.

· Institutional funds are pouring in: Tim McCourt, Global Head of Equity, FX and Alternative Products at CME Group, stated on October 1 that cryptocurrency is "very hot," and the CME platform is recording record levels of open interest and trading volume. Data shows that the total average daily open interest in the third quarter has reached USD 35 billion, reflecting that mainstream financial institutions in the United States are adopting crypto assets at an unprecedented pace.

· Industry mindset shift: Cardano founder Charles Hoskinson stated at the conference, "It's easy to be a rebel, but since we have won, we must now lead as an industry." Ledger's Head of Enterprise Solutions, Sebastien Badault, also mentioned that given the strong position of the financial industry in New York, companies now need to go to the U.S. in person for business development more than ever.

· Intensifying Competition: Although the market size is growing, Wintermute's co-founder Yoann Torpin admits, "The profit margin per trade is definitely decreasing," but the overall market growth can completely offset the decline in profit margins.

Politics and Conflicts of Interest: The Trump Family's Crypto Empire

As the cryptocurrency industry gets closer to the political power center in the United States, controversies over conflicts of interest have erupted.

· The Trump family's encryption strategy: Led by President's sons Eric and Donald Jr., the Trump family currently oversees three crypto businesses, including a Bitcoin mining company, the Trump meme coin, and the decentralized finance project World Liberty Financial.

· USD1 stablecoin: The USD1 stablecoin pegged to the US dollar launched by World Liberty Financial has a market capitalization exceeding 2.6 billion USD. The project's connection to the White House and its rapid development amidst the surge of pro-encryption regulation in the industry have raised strong doubts in the American political arena.1

· The "public corruption" allegations: U.S. Congressman Gerry Connolly criticized the intertwining of Trump's family's encryption empire with the White House as "public corruption." Although Trump's deputy press secretary responded that the assets are held in a trust managed by his children, asserting that there is no conflict of interest, the controversy has not subsided.

· On-site response: Zach Witkoff, CEO of World Liberty Financial (son of US Middle East envoy Steve Witkoff), was asked about the political nature of the project at Token2049, and he stated, "We are not a political organization," but he went on to add that Trump "single-handedly saved the crypto industry from those who wanted to destroy it."

Shadows of the Gray Area: Sanctioned Entities Appearing Together

Despite the cryptocurrency industry striving for mainstream acceptance and compliance, Token2049 still exposed the gray areas of global regulation and compliance challenges.

· A7A5 booth: One of the most controversial topics at the conference was the A7A5 booth. This is a ruble-denominated stablecoin, and authorities in the US and UK have accused it of being used to evade international sanctions imposed on Russia since 2022. According to data from the analytics company Elliptic, as of July, the daily average transfer volume of A7A5 was approximately 1 billion USD.

· Regulatory loophole: The organizer of Token2049 is registered in Hong Kong, and the conference is held in Singapore, but neither Hong Kong nor Singapore has imposed sanctions on the A7A5 entity, allowing it to participate openly in the exhibition. Some attendees revealed that they could even access massage services provided by A7A5 by sharing an encryption address.

· Compliance challenges: This event highlights the complex challenges faced by the encryption industry in adhering to international sanctions and anti-money laundering (AML) regulations across different jurisdictions.

The "GENIUS Act" and the "Freight Train" of Stablecoins

The landmark stablecoin legislation in the United States is reshaping the global landscape of stablecoins and tokenization.

· The Tokenisation Wave: Vlad Tenev, the founder of the trading app Robinhood, described "Tokenisation" as a "freight train" that will disrupt the entire financial system. John Wang, the new head of cryptocurrency at Kalshi, believes that cryptocurrency will play a "crucial" role in the future of prediction markets.

· The "Genius Act" Passed: In July, the landmark stablecoin legislation "Genius Act" was signed into law, legalizing digital dollars on the blockchain and significantly advancing the industry's development. 2

· Tether's Invasion of the U.S. Market: Long excluded from the U.S. market and even described by the United Nations as the "preferred" fraudster in East Asia and Southeast Asia, the $174 billion stablecoin USDT is accelerating its expansion by leveraging favorable regulatory changes.

· Launching USAT: Tether announced the upcoming launch of the stablecoin USAT, designed specifically for the U.S. market. Tether US CEO Bo Hines stated that USAT will combine the significant influence of Tether in underdeveloped areas with large U.S. institutions, "creating a seamless corridor and interoperability between USAT and USDT." This initiative marks Tether's high-profile return to the U.S. market in a Compliance posture. Mainstream fintech companies like Robinhood are also providing customers with white-label solutions for "crypto-as-a-service" through acquisitions of CEX, further promoting the mainstream application of digital assets.

Conclusion

Token2049 witnessed a new starting point for the industry: cryptocurrency has "won" mainstream attention and institutional favor. The shift in U.S. regulation, particularly with the passage of the GENIUS Act, has put stablecoins and tokenization on the "freight train" of financial innovation. However, political conflicts of interest, the gray areas of geopolitical sanctions, and the accompanying regulatory and compliance pressures demand that the crypto industry must quickly transition from "rebels" to responsible "leaders." The next challenge is no longer about how to survive, but how to embrace the mainstream while upholding the principles of decentralization and compliance, answering Charles Hoskinson's question: "Now that we are in the room, what should we say to them?"

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.