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Last week, Paul Atkins, the chairman of the Securities and Exchange Commission (SEC), introduced Project Crypto, an initiative that Bitwise CIO Matt Hougan describes as the “most bullish” crypto document he has ever encountered.
Key Takeaways:
- The SEC’s Project Crypto indicates a significant transition towards onchain finance.
- Bitwise CIO identifies Layer 1s, DeFi, and super-apps as leading crypto investment opportunities.
- The institutional adoption of DeFi could create new value for investors.
In a memo sent to clients on Tuesday, Hougan characterized Atkins’ strategy as a thorough reevaluation of how financial markets should function in the digital era.
Atkins stated that all assets, including stocks, bonds, and currencies, will ultimately transition onchain, with decentralized finance (DeFi) at the center and blockchain-native companies spearheading the movement.
“It’s the most comprehensive vision of how crypto can transform financial markets that I’ve encountered,” Hougan noted, emphasizing that the initiative shifts crypto from the periphery to a foundational role.
Top Crypto Investments Bitwise CIO Recommends
Hougan pointed out three primary investment prospects: Layer 1 blockchains, crypto-enabled super-apps, and DeFi platforms.
Ethereum is at the forefront of Layer 1 infrastructure, but Hougan recommends diversifying into other networks such as Solana, Cardano, and Avalanche.
He cautions that early dominance does not ensure future success, referencing previous technology cycles where initial leaders eventually diminished.
Bitwise, which currently provides spot Bitcoin and Ethereum ETFs, is seeking to broaden its exposure through a crypto index ETF, trading under the ticker “BITW.”
This fund comprises assets like BTC, ETH, SOL, and XRP, aligning with Hougan’s diversified approach to foundational blockchain infrastructure.
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In addition to base layers, Hougan highlighted financial “super-apps” as a future competitive arena.
Atkins’ address outlined a regulatory framework for broker-dealers to seamlessly offer both crypto and traditional assets under a unified licensing system.
Coinbase and Robinhood are both advancing in this direction, and Hougan believes that the firm that successfully implements this model could become the most valuable financial company globally, potentially exceeding a $1 trillion market cap.
DeFi, which has long been in a regulatory gray area, is also acknowledged in Project Crypto. Atkins recognized that DeFi does not conform to traditional frameworks and necessitates innovative thinking.
Hougan interprets this as an indication that platforms like Uniswap and Aave, which already have billions in trading volume and total value locked (TVL), may be on the brink of institutional adoption.
He anticipates that DeFi tokens will develop stronger economic connections to protocol performance, unlocking additional value for investors.
SEC Chair Commits to Bringing Crypto Innovation to the U.S. with ‘Project Crypto’
Earlier this week, Atkins reiterated his dedication to ensuring that the next wave of financial innovation remains in the U.S., asserting that the SEC will not allow foreign markets to surpass American capital markets.
We will ensure the next chapter of financial innovation is authored right here in America.
Watch highlights from my speech launching Project Crypto at @A1Policy. pic.twitter.com/euqY9samPt— Paul Atkins (@SECPaulSAtkins) August 4, 2025
During his speech at the America First Policy Institute, Atkins stressed the agency’s resolve to foster a robust onshore crypto ecosystem.
He also endorsed the latest report from the President’s Working Group on Digital Assets, describing it as a framework for U.S. leadership in blockchain.
Atkins positioned the initiative as part of a larger national strategy, asserting that under new guidance, “our crypto asset economy will be” integral to America’s Golden Age.
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