Last week was a watershed in the evolution of the U.S. digital asset ecosystem, with two high-level official statements on next steps for the regulation and development of its market structure. Lifting the lid and peering more closely, however, reveals that it was more than that. Going beyond just digital assets, last week marked an inflection point in the traditional banking business model. Last Wednesday, the President’s Working Group on Digital Asset Markets, or PWG, finally published the road map President Trump requested upon its creation back in January. The report adds 166 pages of detail to the administration’s promise to recover U.S. leadership in financial innovation by creating clear and supportive rules for the adoption of blockchain technology. The more than 100 proposals include a clarification as to what extent banks can participate in crypto asset activity; modernizing the payments infrastructure to support stablecoins; setting new capital rules for crypto assets held on bank balance sheets; increasing transparency around master account and bank charter applications; updating anti-money-laundering rules for decentralized services; and a whole lot more. Then, just one day later, Securities and Exchange Commission Chairman Paul Atkins delivered one of the more astonishing speeches in crypto history: He outlined Project Crypto, specifying four policy areas for his staff to focus on in their efforts to create a crypto framework. These include asset issuance, custody, licensing and the use of decentralized applications in financial markets. Both proposals came laden with detail as to intentions, a refreshing change. But even more surprising was the scope of the ambition. The initiatives are not just about creating new rules for crypto assets: They’re also about an overhaul of U.S. securities and banking regulation. As such, they impact all market participants, traditional and new. Essentially, the aim of the PWG report and the SEC’s Project Crypto is to blur the boundaries between traditional and blockchain-based markets and financial services. This may sound terrifying to many, as the structure of global finance is a complex web and any profound change will of course give birth to unforeseen risks.