Changes in the United States Securities and Exchange Commission (SEC) policy may significantly influence the cryptocurrency market. In a recent speech, SEC Chair Paul Atkins outlined a new strategy focused on supporting blockchain innovations.
Change in SEC Position
Under Paul Atkins's leadership, the SEC has adopted a more favorable stance towards cryptocurrencies, shelving a number of previous regulatory measures and launching 'Project Crypto'. Atkins emphasized the need for regulatory frameworks that do not hinder the development of on-chain financial markets. This speech is seen by many experts as a turning point that could lead to significant changes in the regulatory environment.
Reactions from Crypto Investors
Matt Hougan, Chief Investment Officer at Bitwise, described Atkins’ speech as 'the most bullish document I’ve ever read on crypto'. He noted that the address leaves questions about whether investors and finance professionals have fully appreciated the real scale of changes in regulatory policy. Hougan urged his peers to increase their crypto exposure as current market valuations may not reflect the consequences of the changes.
Future of DeFi and Public Blockchains
Atkins highlighted two key areas: public blockchains and financial super apps. Hougan believes that if most assets transition to public blockchains, this could lead to a sharp increase in investor demand. He also pointed out that companies like Coinbase and Robinhood could leverage new regulatory conditions to become financial giants. Furthermore, clearer guidance could lead to significant growth for decentralized finance (DeFi).
Atkins's speech represents a fundamental shift in Washington's stance on cryptocurrencies, and Hougan's reaction suggests that the full implications of these changes have yet to be fully realized by the market.
