SEC's Crypto Rules Only Open a Few Doors on Wall Street, Says Bitwise CIO

Bitwise CIO Matt Hougan spoke about the recent positive developments in Washington for cryptocurrency. While he described the SEC's Regulation Crypto Assets proposal and President Trump's Hyperliquid comments as a good week for crypto, he emphasized that it is only a small step towards broader adoption.

Hougan explained that the real barrier to institutional involvement is not a single landmark bill, but rather 'a million small steps.' He used the example of Bitcoin ETFs, which took around two and a half years to gain widespread acceptance after their initial approval in January 2024. During this time, there were multiple stages: SEC approval, platform approval, account eligibility, internal sign-offs, and model portfolios.

Hougan also pointed out that the trade-through rule (Rule 611) created under Regulation NMS in 2005 is a significant obstacle to DeFi venues integrating with brokerage services. He argued that rescinding this rule could be a crucial step towards unlocking more institutional investment in crypto.