SEC Launches Project Crypto to Integrate Blockchain into US Markets

The U.S. Securities and Exchange Commission (SEC), under Chair Paul Atkins—appointed by President Donald Trump—has unveiled a transformative initiative called "Project Crypto" aimed at integrating blockchain technology into the financial system and providing clearer regulatory frameworks for digital assets. This pro-crypto shift marks a significant departure from the previous enforcement-heavy stance under former Chair Gary Gensler and has sparked a surge in crypto markets, particularly in Bitcoin and Ethereum. Matt Hougan, Chief Investment Officer at Bitwise, describes Atkins' recent speech outlining the initiative as the most bullish document on crypto he has ever read and argues that its implications remain largely unpriced in current market valuations. Hougan highlights the potential for decentralized finance (DeFi), financial super apps, and layer-1 blockchains as key beneficiaries of this regulatory pivot, suggesting investors and finance professionals should increase their crypto exposure. Despite recent price volatility, including Bitcoin's drop from highs above $123,000, this regulatory clarity and support could accelerate adoption and innovation in the crypto ecosystem. Overall, the SEC's new approach signals a generational opportunity for the crypto industry, shifting the regulatory landscape toward integration rather than restriction.