SEC’s Project Crypto Shakes Markets: Top Crypto Tokens & Stocks to Watch Now (Bitwise Analysis)
The SEC just dropped a regulatory bombshell—and these assets are primed to move first.
Bitwise's shortlist for the post-Project Crypto landscape
While Wall Street scrambles to decode the 400-page ruling, crypto's institutional darling flags the tokens and equities positioned to win (or lose) in the new compliance era. Hint: The usual suspects aren't where the smart money's looking.
When regulators zig, traders zag
Project Crypto's fine print reveals gaping loopholes for DeFi projects—and landmines for legacy brokers still charging 2% management fees for index funds. The market's already pricing in a 72-hour frenzy of repositioning.
Watch for the usual post-regulation volatility, then brace for the real rally. Because nothing makes crypto more attractive than watching traditional finance tie itself in compliance knots.
Layer-1 tokens, crypto exchanges to benefit from SEC's Project Crypto initiative
The Project Crypto initiative introduced by SEC Chair Paul Atkins last week provides a "roadmap for how to invest over the next five years," Bitwise CIO Matt Hougan said in a note to investors on Tuesday.
"The first and most obvious opportunity is to invest in ethereum and other Layer 1 blockchains that support stablecoins and tokenization," he added.
Hougan noted that investors have yet to price in Atkins' vision as the prices of top Layer 1 tokens, such as Ethereum (ETH) and Solana (SOL), have not yet reacted.
While Ethereum leads the track in stablecoin integration and tokenization, he warns against relying entirely on current front-runners, noting that early winners in past tech shifts didn't always stay on top. He suggested that market participants could adopt an indexed approach, which allows them to purchase several Layer-1 tokens without needing to choose which is the favourite for growth.
Most of these Layer-1 tokens are trading in the green on Wednesday as the crypto market eyes a recovery from its recent decline.
According to Hougan, Project Crypto also presents a good opportunity for Robinhood and Coinbase, as they are already developing products similar to the "Super Apps" concept Atkins highlighted last week. The SEC Chair stated that allowing market participants to "innovate with 'Super Apps' is a major aim of his SEC Chairmanship. He also expressed interest in seeing broker-dealers with alternative trading systems offer a wide range of services, including crypto staking and lending.
"It's hard not to think of Coinbase and Robinhood, two firms that have embraced the super-app concept," wrote Hougan, adding that one of these firms could be the first financial institution to hit a $1 trillion market valuation due to the roadmap that Project Crypto offers.
Other crypto industry leaders have shown support for the new initiative, with several experts citing it as a strong push toward clearer crypto regulation.
