Bitwise CIO Says SEC’s Project Crypto Unpriced, Bulls Ahead
Matt Hougan, CIO of Bitwise, says the SEC’s “Project Crypto” initiative, unveiled by Chair Paul Atkins in his “American Leadership in the Digital Finance Revolution” speech, is the most bullish document on crypto yet—and it hasn’t been priced into markets. Project Crypto aims to modernize securities regulations to bring US financial markets on-chain, turning the country into the “crypto capital of the world.”
In his client memo, Hougan argues that markets likely did not anticipate the SEC’s shift from “crypto antagonist to crypto catalyst.” He identifies three immediate opportunities: first, Layer 1 blockchains supporting stablecoins and tokenization—Ethereum, Solana, Cardano (ADA), XRP, Avalanche, Aptos (APT), Sui, NEAR; second, “super-apps” like Coinbase and Robinhood that combine crypto and traditional services; third, DeFi applications poised for rapid growth once regulatory clarity arrives.
By highlighting legal frameworks for on-chain trading, staking and lending, Project Crypto could unlock significant value for blockchain platforms, trading apps and DeFi protocols. Hougan’s view: if it isn’t priced in now, market prices may rise as investors take note.
Bullish
Project Crypto represents a comprehensive regulatory roadmap that legitimizes on-chain markets, reduces legal uncertainty, and encourages institutional entry. Similar announcements—such as SEC signals on Bitcoin ETFs—historically triggered positive price moves in major cryptocurrencies. By endorsing tokenization, staking and lending services, the initiative could unlock fresh liquidity across Layer1 blockchains and DeFi protocols. In the short term, this signal may boost market sentiment and trading volumes. Over the long term, clearer regulations can sustain growth, driving higher adoption of crypto assets and platforms.