This Could Be the Most Bullish SEC Crypto Shift in History
The U.S. Securities and Exchange Commission (SEC) has adopted a more crypto-friendly approach on cryptocurrencies under the leadership of Chair Paul Atkins, a change Bitwise CIO Matt Hougan says the market has yet to fully absorb.
The SEC’s new policies, combined with a favorable political environment, could drive major growth in blockchains, super apps, and decentralized finance (DeFi), though the timeline for market adjustment remains uncertain.
SEC Vision for Blockchain Growth
Since assuming the role of SEC Chair on April 21, 2025, Paul Atkins has led a crypto-friendly agenda.
In a July 31 speech at the America First Policy Institute, he laid out a vision to make America “the crypto capital of the world.” The SEC has also terminated several enforcement actions against crypto companies and launched Project Crypto, an initiative to create clear regulations for on-chain markets.
Atkins is focusing on blockchain’s role in financial systems, advocating for rules that support DeFi and modernize securities laws. Proposed measures include simplified custody requirements, single licenses for platforms like Coinbase and Robinhood, and customized disclosures for initial coin offerings and airdrops.
Atkins referenced California’s DMV, which placed 42 million car titles on a blockchain by July 30, 2025, as evidence of real-world adoption. He criticized the previous administration’s “regulation-by-enforcement” tactic for pushing crypto companies offshore, and Project Crypto looks to bring all of them back home.
What Investors Need to Know About The Untapped Crypto Potential
Bitwise CIO Matt Hougan described Atkins’ speech as “the most bullish document” regarding crypto he has ever read, insisting its market impact is understated and yet to reflect in prices.
Hougan predicts that clearer regulations could lead to 10x, 50x, or even 100x growth for blockchains, super apps, and DeFi.
“I cannot imagine reading this speech and not wanting to invest serious capital in crypto,” he said, urging investment now to capitalize on the opportunities.
Bitcoin reached nearly $85,000 in November 2024, due to increased institutional demand and $50–$60 billion in Bitcoin ETF inflows since their January 2024 approval.
Hougan noted a “fascinating dichotomy” between strong institutional demand and weak retail demand, with untapped benefit for early buyers as markets adjust to the SEC’s shift.
Crypto Finds Allies in Washington and Wall Street
The SEC’s shift is in line with an overall pro-crypto political and market landscape. President Donald Trump’s election has removed what Hougan called the “last vestige of reputational risk” for crypto, with the administration prioritizing digital assets.
The GENIUS Act, signed into law in July 2025, provides a regulatory framework for stablecoins, with projections estimating growth from $220 billion to $1 trillion by 2027, largely driven by B2B payments.
Institutional adoption is increasing, with Bitwise data showing 100,000 BTC purchased versus 18,000 mined in 2025. Bitcoin ETFs and state initiatives, such as Texas’ Bitcoin reserves, are testament to the growing institutional confidence.
While Bitcoin’s new all-time high of $120,091 in July 2025 is proof of sustained market optimism, Hougan argues that regulatory clarity could bring further gains.
