TL;DR
- Regulated ICOs are shaping up to be the central theme of 2026.
- They represent the fourth pillar of financial disruption for cryptocurrencies.
- They democratize startup financing with regulatory compliance and broad access.
Matt Hougan, Chief Investment Officer at Bitwise, highlighted that Coinbase’s new token sale platform, launched on November 10, 2025, may mark the beginning of a regulated era for initial coin offerings (ICOs). He predicts that compliant ICOs could become a central theme in 2026, reshaping how startups raise capital and engaging a broader set of investors.
Hougan explained that capital formation—the process of raising funds to launch businesses, develop products, and create jobs—represents a fourth major pillar in crypto’s disruption of traditional finance. Previously, Bitcoin redefined gold, stablecoins redefined dollars, and tokenization redefined trading and settlement. Now, compliant ICOs aim to democratize startup funding while adhering to regulatory standards.
Bitwise Crypto Enters a New Phase of Capital Formation
He emphasized that past ICO waves, particularly in 2017 and 2018, demonstrated blockchain’s ability to connect entrepreneurs and investors faster and more cost-effectively than traditional IPOs, even if early implementations faced fraud and regulatory hurdles. The lessons from those early experiments, Hougan noted, suggest that crypto can raise capital efficiently while reducing fees and procedural barriers.
“Although ICOs had flaws, they proved that blockchain can fund new projects quickly,” Hougan wrote. He contrasted this approach with conventional IPOs, which often favor wealthy investors through high fees and complex procedures. By incorporating regulatory compliance, the new ICO framework could attract institutional and retail participants alike, leveling the playing field in venture funding.
As Coinbase rolls out its token sale platform, Hougan argues the signals a structural shift in the crypto market. Compliant ICOs could not only fund innovation but also support the next bull market, potentially creating trillions of dollars in economic activity across tokenized assets, stablecoins, and Bitcoin.
If executed properly, this renewed approach to ICOs could define crypto’s financial trajectory in 2026, offering a regulated yet fast-moving avenue for startups to access capital and for investors to participate in early-stage projects with increased protection.
