Wall Street on-chain migration could fuel next crypto bull run, Bitwise CIO says – plus new regulatory moves

Bitwise Asset Management's chief investment officer believes the next major crypto bull market will be driven by traditional financial institutions bringing their operations onto blockchain networks. This shift, often called onchain migration, could unlock significant institutional capital and liquidity for digital assets, according to the CIO. The prediction comes as Wall Street firms increasingly explore tokenization, custody, and trading infrastructure built on public blockchains.

Separately, Republican lawmakers have published a new draft of the Clarity Act, a bill intended to provide clearer regulatory guidelines for cryptocurrencies and digital assets. The updated version aims to address ambiguity around token classification and exchange registration, which has been a persistent hurdle for mainstream adoption. The release signals continued legislative momentum in Washington, though the bill's path to passage remains uncertain.

Adding a cautionary note, a U.S. Securities and Exchange Commissioner issued a warning about risks in the decentralized finance sector. The commissioner highlighted vulnerabilities in DeFi protocols, including potential for hacks, lack of investor protections, and regulatory blind spots. The remarks suggest that even as Congress moves toward clarity, the SEC may intensify scrutiny of DeFi platforms, creating a mixed regulatory environment for crypto investors.

For investors, the convergence of Wall Street onchain adoption, potential regulatory clarity, and heightened SEC oversight creates both opportunities and risks. The Bitwise CIO's bullish outlook aligns with growing institutional interest in tokenized assets, but the SEC's warning underscores that DeFi projects face a heightened compliance burden. The next bull market could be led by regulated, institution-friendly crypto products rather than speculative retail tokens.