SEC Crypto Pivot Has Not Been Priced In Bitwise CIO Says

The evolving stance of the U.S. Securities and Exchange Commission (SEC) toward cryptocurrency has not yet been fully reflected in market valuations, according to Matt Hougan, chief investment officer of Bitwise. In a recent commentary, Hougan emphasized that the SEC’s new direction, outlined in a speech by Chair Paul Atkins, represents a significant and underappreciated shift in regulatory tone. “The most bullish document I’ve read on crypto wasn’t written by some yahoo on Twitter. It was written by the chairman of the SEC,” Hougan remarked, highlighting the unexpected clarity and optimism in Atkins’ vision [1].

Atkins’ speech, delivered on July 31 at the America First Policy Institute, outlined a forward-looking approach to blockchain technology and its integration into financial markets. Among other proposals, he discussed the need to ensure regulations do not hinder the growth of on-chain markets. Hougan noted that the speech included actionable plans that align with long-standing crypto industry demands, suggesting that the SEC is not only acknowledging the significance of digital assets but also preparing to facilitate their development [1].

The market has already responded positively to the broader regulatory shifts under the Trump administration. Bitcoin reached new all-time highs after former SEC Chair Gary Gensler resigned in January and again when Paul Atkins was sworn in on April 21. Under Atkins’ leadership, the SEC has suspended long-running enforcement actions against crypto firms and launched Project Crypto, an initiative aimed at developing clear and workable regulations [1].

Despite these developments, Hougan argues that the market has yet to fully internalize the implications of the SEC’s pivot. “I’m realizing I have to think bigger—and move to a faster timeline,” he said, indicating that other investors may be similarly underestimating the potential impact. This could open a window of opportunity for those who are willing to adjust their strategies in anticipation of a more structured regulatory environment [1].

Hougan also highlighted specific areas poised to benefit from a more crypto-friendly SEC. He pointed to public blockchains as a key opportunity, suggesting that if major assets such as stocks, bonds, and fiat currencies begin to migrate onto blockchain platforms, exposure to those blockchains could become increasingly valuable. Additionally, he noted the potential for super apps—platforms like Coinbase and Robinhood that offer a wide range of financial services—to grow into dominant forces in the industry, potentially even reaching a valuation exceeding $1 trillion [1].

Another area of interest is decentralized finance (DeFi), which has operated in a regulatory gray zone for much of its existence. Hougan suggested that a clearer and more supportive regulatory framework could allow DeFi platforms to thrive, attracting more users and capital as they become more mainstream. “With greater clarity, could these numbers rise by 10x? 50x? 100x?” he asked, underscoring the transformative potential of the sector [1].

The broader implications of the SEC’s approach remain to be seen, but Hougan’s analysis underscores the possibility of a significant shift in how digital assets are perceived and valued. If the SEC can successfully balance innovation with investor protection, it could pave the way for a new era in financial markets—one where blockchain and digital assets are no longer on the periphery but at the center of global finance.

Source: [1] [SEC’s crypto pivot has ‘not been priced in’ — Bitwise CIO](https://cointelegraph.com/news/sec-crypto-pivot-not-priced-in-bitwise-matt-hougan)