SEC Chair’s Project Crypto Is “Most Bullish” Crypto Document Yet, Says Bitwise CIO

Paul Atkins, chairman of the Securities and Exchange Commission (SEC), unveiled Project Crypto last week, an initiative that Bitwise CIO Matt Hougan is calling the “most bullish” crypto document he’s ever read.

Key Takeaways:

• SEC’s Project Crypto signals a major shift toward onchain finance.
• Bitwise CIO sees Layer 1s, DeFi, and super-apps as top crypto bets.
• Institutional adoption of DeFi could unlock new value for investors.

In a memo to clients on Tuesday, Hougan described Atkins’ plan as a complete rethinking of how financial markets should work in the digital age.

According to Atkins, all assets, including stocks, bonds, and dollars, will eventually migrate onchain, with decentralized finance (DeFi) at the core and blockchain-native firms leading the charge.

“It’s the most complete vision of how crypto can reshape financial markets that I’ve read,” Hougan wrote, adding that the initiative transforms crypto from fringe to foundational.

Hougan highlighted three key investment opportunities: Layer 1 blockchains, crypto-enabled super-apps, and DeFi platforms.

Ethereum leads the pack in Layer 1 infrastructure, but Hougan advises diversification across other networks like Solana, Cardano, and Avalanche.

He warns that early dominance doesn’t guarantee future leadership, citing past tech cycles where initial winners eventually faded.

Bitwise, which already offers spot Bitcoin and Ethereum ETFs, is pushing to expand its exposure through a crypto index ETF, currently trading under ticker “BITW.”

The fund includes assets like BTC, ETH, SOL, and XRP, aligned with Hougan’s diversified bet on foundational blockchain infrastructure.

Beyond base layers, Hougan pointed to financial “super-apps” as a future battleground.

Atkins’ speech laid out a regulatory path for broker-dealers to seamlessly offer crypto and traditional assets under a unified license regime.

Coinbase and Robinhood are both moving in this direction, and Hougan believes the firm that cracks this model could become the world’s most valuable financial company, potentially surpassing a $1 trillion market cap.

DeFi, long caught in a regulatory limbo, also gets a nod in Project Crypto. Atkins acknowledged that DeFi doesn’t fit traditional frameworks and requires new thinking.

Hougan sees that as a signal that platforms like Uniswap and Aave, already boasting billions in trading volume and TVL, could be on the verge of institutional adoption.

He expects DeFi tokens to grow stronger economic ties to protocol performance, unlocking more value for investors.

Earlier this week, Atkins reaffirmed his commitment to keeping the next wave of financial innovation in the U.S., stating the SEC will not let overseas markets outpace American capital markets.

We will make sure the next chapter of financial innovation is written right here in America.

Watch highlights from my speech launching Project Crypto at @A1Policy. pic.twitter.com/euqY9samPt

Speaking at the America First Policy Institute, Atkins emphasized the agency’s determination to support a thriving onshore crypto ecosystem.

He also backed the latest report from the President’s Working Group on Digital Assets, calling it a blueprint for U.S. leadership in blockchain.

Atkins framed the effort as part of a broader national agenda, declaring that under new guidance, “our crypto asset economy will be” part of America’s Golden Age.

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