Fed closed-door meeting exposure: Trump + Powell join forces to allow DeFi, beginning the era of encryption! Who will take advantage of the AI financial dividend?

The U.S. government recently sent two major signals, signaling the complete mainstreaming of the cryptocurrency industry in the United States! The first signal is "technology clearing"! At a "historic" Fintech meeting held by the Federal Reserve that was not open to the public, Federal Reserve Board member Waller bluntly stated, "The digital financial industry (DeFi, decentralized finance) is no longer doubted, we should embrace disruption, not avoid it." This resolves the issue of the acceptance of crypto assets by the technology and financial systems. The second signal is the removal of political obstacles! On October 23, Trump signed a pardon order, pardoning Binance founder Zhao Changpeng. The Federal Reserve's "technology clearing" + the White House's "political pardon", these two major signals together lay the foundation for the comprehensive mainstreaming of cryptocurrencies, removing the last stumbling blocks at the technological and political levels. Today, we will focus on several core issues of concern to you, uncovering the stories of money, power, and future wealth behind these two major events: Why did Trump choose to pardon Zhao Changpeng at this time? Does it involve deeper transactions related to his family's interests and cryptocurrency funds? How does the Federal Reserve's "streamlined main account" nullify traditional banks' monopoly power and give stablecoin companies the "privilege" to surpass intermediaries? With regulatory and political obstacles removed, who will be the ultimate beneficiaries of this AIfinancial reshuffle? Why did Trump pardon Zhao Changpeng? On October 23 of this year, Trump signed a pardon order, pardoning Binance founder Zhao Changpeng. Upon hearing the news, Zhao Changpeng immediately expressed his gratitude to the president and declared his appreciation for America's commitment to "fairness and innovation." Now, let's look at how Trump explained why he pardoned Zhao Changpeng. When asked directly by a reporter, "Did you pardon Zhao Changpeng because he was involved in cryptocurrency businesses related to your family?", Trump replied, "I don't know him, he was recommended by many people." He also criticized the reporter for being "ignorant" about the cryptocurrency field, calling the reporter a "fake journalist." By linking the keywords "Trump family, Binance Zhao Changpeng, cryptocurrency, Biden" in this conversation, it can be seen that there is a deep political game behind this pardon. It not only involves individual interests but also concerns the strategic layout of the future financial landscape of the United States. Trump claims he "doesn't know Zhao Changpeng," but data tells us he is lying. Public information shows that in March 2025, the World Liberty Financial (WLFI) company under the Trump family launched a stablecoin called USD1. This stablecoin saw a rapid increase in value within a few months, with about 90% of the circulating supply concentrated on Binance's public chain. As an early supporter of this project, Zhao Changpeng utilized Binance's massive ecosystem of nearly 300 million users to provide strong technical support and a user base for the Trump family's stablecoin. In May 2025, the Abu Dhabi state-owned investment company MGX purchased USD1 stablecoin for $2 billion, quickly becoming one of the top ten stablecoins globally. It is estimated that the Trump family made more than $50 million in profit through this transaction. This cooperation not only allowed Zhao Changpeng to create a wealth channel for the Trump family using Binance's user base but also established a strong relationship of interest between the Trump family and Binance. In this context, pardoning Zhao Changpeng was clearly a realization of the interests of strategic partners. However, overturning a legal judgment solely for the sake of $50 million for the family carries risks. Market Investment Network believes that the deeper motivation driving the pardon is the competitive pressure the United States faces in the global cryptocurrency market. Cryptocurrency regulation in the United States has long been in a state of confusion. The SEC and CFTC, two major regulatory agencies, are fighting for jurisdiction and using outdated legal frameworks that are inadequate for the rapidly evolving market. Data shows that over 40% of cryptocurrency companies choose to move their operations out of the United States, with many companies moving to more cryptocurrency-friendly regions like Singapore and the UAE. This means that the competitiveness of the United States in the cryptocurrency market is rapidly declining. Trump clearly realizes that if measures are not taken soon, the United States will completely lose its future dominance in global finance. Zhao Changpeng and Binance, as the world's largest and most influential cryptocurrency platform, have become strategic resources that the United States must strive for. With a global user ecosystem and daily trading volumes reaching billions of dollars, Binance has become an important infrastructure in the global financial market. Pardoning Zhao Changpeng not only allowed Trump's family to earn a fortune, but also helped the United States secure a voice in the global digital financial field. In summary, Trump's pardon of Zhao Changpeng, through cooperation with Binance, not only made a large profit for his family but also secured support from the cryptocurrency community and gained a key advantage for the United States in the global financial battle. Streamlined Main Account: The Federal Reserve opens the "main entry" However, removing political obstacles is just the first step. To truly integrate crypto assets into the mainstream economy of the United States, the "central nervous system" of the financial system - the Federal Reserve - needs to open its doors. The most significant signal from the Federal Reserve's closed-door meeting came from Federal Reserve Board member Waller, who introduced a new concept - the "streamlined main account." To understand the power of this, we first need to understand the biggest challenge faced by stablecoin companies and fintech companies in the past. Taking the issuer of USDC, Circle, as an example. Despite being the most compliant stablecoin company in the United States, it has always faced some restrictions in the dollar system. Every time a settlement is needed or USD reserves need to be held, they need to rely on traditional banks as intermediaries. This reliance on traditional banks for settlements has several problems: High costs: Every transaction goes through bank clearing, paying high intermediary fees, making it difficult for innovative companies to profit. Low efficiency: The crypto market operates 24/7, while banks only operate during business hours. When Circle wants to complete a transaction on weekends or late at night, they have to wait for the banks to open, turning transactions that could have been instant into ones that take days. Concentration of risk: The reserves of stablecoins must be held in cooperative bank accounts. If a bank encounters problems (such as several regional banks collapsing in the past), these reserves will be affected. The bank's risk directly becomes the system's risk. The "streamlined main account" proposed by Waller aims to break down this dependency structure. The core idea is to allow non-bank payment companies that meet the requirements to directly access the Federal Reserve's Fedwire payment system. For the U.S. financial system, this is a revolutionary change. In the past, only commercial banks could settle directly with the Federal Reserve, but now the Federal Reserve is providing a simplified "fast lane" for innovative companies. However, this account is not freely usable. Waller made it clear that this account has strict limitations: it cannot provide loans, cannot enjoy discount windows, cannot overdraft, does not earn interest, and is mainly used for payment settlement, not for expanding credit. But because of these restrictions, the approval process is faster and the threshold is lower, like the Federal Reserve has opened a "fast lane" for innovative companies. This may seem like a technical adjustment, but it is actually a major institutional change in the U.S. financial system. How AI officially enters the financial arena If the "streamlined main account" proposed by the Federal Reserve solves the problem of faster and safer fund flows, then the second signal focuses on the future - how to make funds achieve "self-driving." This is what ARK Invest's "Wood Sister" mentioned at the meeting, the concept of "Agent Business." In simple terms, Agent Business signifies a transformation in financial execution: from a system operated by humans to a system executing tasks automatically based on rules. Previously, what we referred to as "intelligence" was just reminding you that "payment is due"; in the future, the system will be able to automatically make payments, rebalance, and generate all related records without human intervention. For example, household bills automatically renew, and companies reconcile bills automatically, all operations are carried out according to preset rules and automatically executed by the system. It's like an autonomous car, set the destination, and it will safely get there following the set path. To achieve this 24/7, millisecond-level "machine-to-machine" trading, having a smart "brain" (an intelligent system) is not enough. Matching it with "veins and nerves" - programmable stablecoins and on-chain settlement systems. Specifically, writing business rules into smart contracts, setting permissions in digital wallets, allowing transfers and accounting to occur simultaneously, ensuring that every step of compliance and risk control can be tracked and recorded. Only when payment tools have the characteristics of 7x24 availability, compliance, and programmability, can the "self-driving" system of Agent Business truly be activated. The economic impact of this change is significant. Every payment, every settlement completed automatically, eliminates manual operations, complex reconciliations, and inter-institutional friction, greatly increasing the speed of capital flow in the economy. Wood Sister predicts that in the next five years, driven by "automatic execution + programmable settlement", the actual GDP growth rate of the United States may return to a high level of 7%. This not only improves efficiency, but also redefines the ceiling of economic growth. This means that our investment perspective needs to change: Previously, we focused on a company's "information processing capability" (such as whether it could write reports or generate content), Now, we should focus on their "cash flow processing capability" (i.e. whether they can transfer funds quickly, safely, and at low cost).