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Cryptocurrency stakeholders might be undervaluing the degree of the US securities regulator’s updated position on crypto, suggesting that cryptocurrency values could still have potential for growth, according to the chief investment officer of Bitwise.
US Securities and Exchange Commission Chair Paul Atkins released a discourse he delivered on July 31 at the America First Policy Institute regarding how blockchain technology will be incorporated into the financial markets.
Bitwise’s Matt Hougan on Tuesday expressed that the discourse surprised him and left him pondering whether Atkins’ perspective had already been factored into the market.
“The most optimistic document I’ve come across concerning crypto wasn’t authored by some random person on Twitter. It was crafted by the chairman of the SEC.”
“I can’t fathom reading the discourse and not feeling compelled to allocate a considerable portion of your resources to crypto, or, if you are involved in finance, a substantial part of your career,” stated Hougan.
The cryptocurrency markets have surged notably since the election of US President Donald Trump, who promised to alter the leadership and direction of the SEC.
Bitcoin surged to unprecedented peaks after former chair Gary Gensler stepped down on Jan. 20, coinciding with Trump’s inauguration.
It rose again when Paul Atkins was inaugurated as the new chair on April 21.
Under his leadership, the agency has terminated prolonged enforcement actions against crypto entities and, most recently, commenced Project Crypto, an effort to implement clear regulations.
Nonetheless, Hougan remarked that the market may not yet fully grasp the impacts of the recent shifts at the SEC.
“I’m realizing I must think larger — and shift to a quicker timeline. If I hadn’t accounted for this, I’m going to guess others haven’t either.”
SEC’s Paul Atkins’s vision for crypto
During his address, Atkins mentioned that the SEC, among other initiatives, is exploring effective methods to ensure that rules and regulations do not hinder the development of onchain markets.
“It’s as if the chairman of the SEC assembled all the best concepts crypto advocates have been championing for the last decade and consolidated them into a single address, detailing how the SEC can genuinely realize them,” noted Hougan.
“There’s an abundance of insights to dissect in the address for investors; one could formulate an entire venture capital firm around the chairman’s vision, creating enterprises to leverage each opportunity he outlines.”
Blockchain and super apps at the forefront
Hougan asserted that blockchains could be set for expansion based on Atkins’s comments in his speech about all assets, including stocks, bonds and dollars, transitioning to public blockchains.
“It doesn’t require exceptional insight to observe it: If nearly all assets are going to migrate to public blockchains, you’ll want exposure to those blockchains,” Hougan elaborated.
At the same time, Atkins’s reference to super apps, which Coinbase and Robinhood have already adopted as a notion, could be another sector poised for growth.
“I’ll venture a prediction here: One of these firms could emerge as the largest financial services enterprise globally, potentially becoming the first financial services company valued over $1 trillion. Atkins has just provided them with a blueprint,” Hougan stated.
DeFi could flourish with clear regulations
Hougan also anticipated decentralized finance (DeFi) applications will thrive with a more amenable SEC, having navigated through a regulatory gray area.
Related: Crypto entrepreneurs were leaving America, but we can entice them back
Atkins emphasized in his speech that DeFi would have a crucial role in the future, particularly after enduring a challenging regulatory landscape.
“With enhanced clarity, could these figures increase by 10x? 50x? 100x? As traditional and crypto markets converge, the potential is enormous,” Hougan remarked.
Magazine: SEC’s reversal on crypto leaves vital questions unresolved
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