U.S. authorities are integrating crypto into the traditional financial framework. Trump's executive order required the Federal Reserve to open master accounts for crypto firms. The CFTC defended federal priority in court against Minnesota, and states have allowed banks to provide custody services. At the same time, TradFi infrastructure is implementing rails for crypto payments: Standard Chartered is acquiring a crypto custodian, the Bank of England is preparing rules for systemic stablecoins, and 37 European banks are developing a euro stablecoin. U.S. Government Incorporates Crypto into the Financial System In one week, federal regulators took three steps towards officially integrating crypto into the banking framework. Trump's executive order on May 20 required the Federal Reserve to update its regulatory framework for digital assets and clarify whether the 12 federal banks can independently open master accounts for crypto firms. The new chairman, Kevin Warsh, an investor in numerous crypto projects, calls BTC "the new gold for people under 40." On the same day, the CFTC sued Minnesota Governor Tim Walz over SF 4760, the first complete ban on prediction markets in the U.S., which criminalized banks, payment systems, and media for participating in the sector. Previously, the agency filed suits against Illinois, Arizona, and Connecticut. From August 1, Minnesota also allowed state banks to offer crypto custody services. TradFi Incorporation Accelerates on Both Sides of the Atlantic Institutional infrastructure is embracing crypto rails faster than regulators can draft rules. On May 19, Standard Chartered acquired the custody business of Zodia Custody’s subsidiary. The bank predicts $4 trillion in tokenized assets by 2028 compared to today's $358.1 billion in stablecoins and real-world assets (RWA). Deputy Governor of the Bank of England, Sarah Breeden, presented a concept on May 21 for a multi-currency system comprising bank deposits, stablecoins, and potentially CBDCs. A draft of rules for systemic stablecoins will be released in June. The European Commission opened a review of MiCA on May 21, and 37 EU banks led by BNP Paribas, ING, and UniCredit are developing a euro-stablecoin payment system to launch in the second half of 2026. Blockchain.com filed a confidential IPO application in the U.S. on May 22. BTC Usage Expands from Strategy to Tehran Demand for BTC is spreading across two contours—corporate and sanction circumvention. Strategy purchased 24,900 BTC for $2 billion on May 18, now holding 4% of the supply worth $64.4 billion, acquiring convertible bonds at $1.38 billion for $0.92 on the dollar. Tether acquired SoftBank's stake in Twenty One Capital on May 21, the second-largest public BTC treasury with 43,500 BTC. On May 19, Iran launched "Hormuz Safe," a tariff of $1 in BTC per barrel for passage through Hormuz, ranging from $200,000 to $2 million per tanker, with settlements conducted through Lightning Network off-chain.