Since the crypto winter began in early 2022, several market crashes and institutional collapses have ravaged the innovative financial ecosystem. Among global regulators, the major discourse is no longer the full prohibition of crypto-related activities but the protection of traditional financial systems from a “great” crypto crisis capable of disrupting financial stability. However, existing regulatory frameworks lack clarity on major aspects of the crypto ecosystem, especially relating to new associational risks and its potential to drive systemic risks among crypto conglomerates. This article examines the anatomy of recent crypto crashes and highlights the limitations of existing global regulatory developments toward preventing these threats from potentially spreading to traditional financial systems. To these emerging concerns, the article argues for the adoption of an entity-based approach to crypto regulations. Specifically, it proposes the application of adjusted prudential regulations to a new category of systemically important crypto intermediaries (SICIs) like traditional systemic institutions.