Cryptocurrencies are likely underestimating the scope of U.S. securities regulators’ new stance on crypto, meaning crypto prices still have room for growth, according to Bitwise’s chief investment officer.
Paul Atkins, chairman of the U.S. Securities and Exchange Commission, gave a speech at the American First Policy Institute on July 31 on how blockchain can be integrated into financial markets.
Matt Hougan of Bitwise on Tuesday said the speech “had been caught off guard” and wondered whether Atkins’ vision was priced on the market.
“The most bullish document I’ve read on Crypto is not written by Yahoo on Twitter. It was written by the SEC chairman.”
“I can’t imagine reading my speech and not wanting to assign a significant portion of my capital to the code.
sauce: Matt Hogan
The crypto market has won a huge amount since the election of US President Donald Trump, who was committed to changing the leadership and direction of the SEC.
Bitcoin has surged to a new all-time high after former chairman Gary Jensler resigned on January 20th and Trump took office.
It spiked again when Paul Atkins was sworn in as a replacement chair on April 21st.
Under his reign, the agency rejected long-term enforcement measures against crypto companies and recently launched Project Crypto, an initiative to establish clear regulations.
However, Hougan said it is likely that the market has yet to fully assess the impact of changes in the SEC.
“I realized I had to think bigger and then go to a faster timeline. If it wasn’t priced for me, I think it wasn’t priced for others.”
SEC’s Paul Atkin’s Crypto Vision
In his speech, Atkins said that, among other initiatives, the SEC is considering the best ways to ensure that rules and regulations do not stifle growth in the on-chain market.
“It’s like the SEC chairman took all the best ideas Crypto supporters have been promoting over the past decade and packaged them in one speech, along with details on how the SEC actually makes them happen,” says Hougan.
“There’s a lot to solve speeches for investors. You can build an entire venture capital company around the chairman’s vision and create a company that will take advantage of each opportunity he will layout.”
Blockchain and Super Apps at the top of the list
Hougan said in his speech on all assets such as stocks, bonds and dollars, blockchain could be prepared for growth based on Atkins moving to public blockchain.
“You don’t need geniuses to see that. If virtually every asset is moving to a public blockchain, you need to be exposed to those blockchains,” Hougan added.
At the same time, Atkins’ mention of super apps that Coinbase and Robinhood already embrace as concepts could become another area of growth.
“I’m going out here on my hands and feet. One of these companies could become the world’s largest financial services company, and even the first financial services company worth more than a trillion dollars. Atkins gave us a roadmap,” says Hougan.
Defi could thrive with clear regulations
Hougan also predicts that decentralized finance (DEFI) apps will benefit from a more friendly SEC after living in the regulatory grey zone.
Related: Crypto-entrepreneurs were fleeing America, but we can get them back
In his speech, Atkins said that after suffering under the yoke of a hostile regulatory environment, defi will play an important role in the future.
“If it’s become more clear, can these numbers rise tenfold? 50x? 100x? As traditional and crypto markets merge, opportunities are enormous,” says Hougan.
magazine: SEC U-turns in Crypto leave important questions unanswered
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