Washington gave crypto every legal win it begged for then lost the market anyway

October 6, 2025: Bitcoin breaks above $126,000, carried by the belief that its long migration from internet curiosity to a real financial institution is almost complete. Wall Street has ETFs, public companies are raising billions to buy coins, and the White House wants the US to become the world’s crypto capital. After years of regulatory warfare, institutionalization appears to have arrived.August 3, 2026: Bitcoin trades around $62,600, a little less than half its peak. In the ten months between those dates, Washington hasn’t revived its old crackdown, closed the ETFs or threatened any of the major American exchanges. It has actually kept moving in the opposite direction, supporting the industry, which left the market without explanation for the decline. The legal barriers the industry faced just a year ago were tough, and many of them fell. However, demand still disappeared. The crypto industry faced many hurdles in the previous cycle. Regulatory uncertainty frightened banks, raised legal bills, discouraged American product launches, and made large institutions reluctant to touch the sector.Enforcement was done through lawsuits rather than existing laws and regulations; custody w...