Regulated ICOs Predicted to Fuel $1B Offerings and Reshape Crypto Capital Formation in 2026

Bitwise Chief Investment Officer Matt Hougan has forecasted that compliant initial coin offerings (ICOs) could become a central theme in 2026, potentially redefining capital formation in the cryptocurrency space. This prediction follows Coinbase's launch of a new token sale platform on November 10, 2025, which Hougan described as a turning point for regulated token sales.

Hougan emphasized that capital formation represents the fourth pillar of crypto's disruption of traditional finance, building on Bitcoin's role in redefining gold, stablecoins in redefining dollars, and tokenization in trading and settlement. He noted that past ICO waves in 2017 and 2018 demonstrated blockchain's ability to connect entrepreneurs and investors more efficiently than traditional IPOs, despite early issues with fraud and regulation. "Although ICOs had flaws, they proved that blockchain can fund new projects quickly," Hougan wrote, contrasting this with conventional IPOs that often involve high fees and complex procedures favoring wealthy investors.

The new regulated ICO framework, exemplified by Coinbase's platform, aims to democratize startup funding by incorporating regulatory compliance, attracting both institutional and retail participants. Hougan predicts more than six separate offerings could reach the $1 billion mark, with Monad (MON) serving as the inaugural project on Coinbase's platform. This approach includes due diligence, transparent disclosures, and investor protections, addressing past criticisms.

If executed properly, compliant ICOs could support the next bull market, generate trillions in economic activity, and level the playing field in venture funding, marking a structural shift in crypto's financial trajectory.