The role of the central bank is quietly changing. In the past, they only set rules and observed from afar; now, they are directly involved.

The year 2025 marks a particularly obvious shift in the Federal Reserve's identity. It is no longer a bystander but has sat down at the crypto table. Transitioning from a mere policy maker to an active market participant reflects a deep restructuring of the global financial architecture. Once central banks enter the game, the rules of play change entirely.

**Seemingly liberalized, but actually controlled**

The Fed's operations in 2025 are quite interesting. On the surface, regulation has been relaxed—April saw the abolition of prior approval requirements, allowing banks to freely engage in crypto activities. But at the same time, they are integrated into the traditional regulatory framework. This "freedom within control" approach demonstrates the Fed's cleverness.

On one hand, it provides space for market innovation; on the other, it firmly maintains ultimate control through infrastructure layout. For example, the "streamlined main account" reform allows crypto institutions to connect directly to the Fed's payment system—sounds very open, but these accounts are actually limited, with no intraday overdraft privileges, fundamentally different from full bank accounts.

**Division of labor and cooperation between SEC and the Fed**

Even more interesting is how the Fed and SEC coordinate. They form a complementary model of "functional regulation + institutional regulation"—the Fed oversees crypto activities involving banks, stablecoins, etc., while the SEC exercises authority over standard securities assets.

With this division of responsibilities, regulatory gaps are minimized. Take Coinbase's staking service as an example: the SEC considers it a securities brokerage, while the Fed checks on fund custody and reserves. One agency reviews permissions, the other assesses risks—both sides are tightly constrained.