SEC Chairman Paul S. Atkins announced in Washington the launch of “Project Crypto,” a Commission-wide initiative to modernize crypto market regulation. The initiative aims to make Bitcoin and blockchain the center of America’s financial future, an update to the current rules.
The plan covers asset classification and issuance, tokenization, custody and trading rules, integrated securities and non-securities markets, super-app access, DeFi compliance, and innovation exemptions. This project aligns with President Donald Trump’s vision to make the United States the crypto capital of the world.
What Does Project Crypto Entail?
Project Crypto is an initiative that will overhaul the current securities regulations for digital assets, paving the way for greater regulatory clarity and innovation. The initiative has four core pillars – regulatory modernization for on-chain markets, supporting vertically-integrated platforms, eliminating reliance on offshore structures, and catalyzing tokenized securities.
Atkins said the SEC will craft clear rules for digital assets trading and custody, subject to public comment. He said the current legacy rules are incompatible with on-chain systems and will be repealed where necessary. He also emphasized that most crypto assets aren’t securities, pushing firms to set up offshore structures outside the United States, despite being transparent.
The SEC boss, in his high-profile speech, pushed for the support of super-app architectures, mirroring Elon Musk’s vision for X. He said the super app will be capable of trading, staking, lending, and custody across securities and non-securities under a licensed model. Furthermore, Project Crypto will enable securities tokenization on blockchain infrastructure by embedding it into the U.S. capital markets.
Atkins Outlines the Objectives of Project Crypto
The SEC Chairman said the regulator’s objective is to help market participants integrate crypto assets into several categories, such as stablecoins and NFTs, and assess the economic realities of a transaction. “This approach can allow market participants to determine, based upon clear guidelines, whether any outstanding promises or commitments of the issuer cause the crypto asset to be subject to an investment contract.
According to Atkins, Project Crypto clarifies the misconception that has stifled innovation and development of digital assets in the United States. The regulator plans to create a clear regulatory framework that will guide the trading and custody of cryptocurrencies. This, he said, will make it straightforward for more people and businesses to adopt them.
Atkins revealed that the agency will ensure that decentralized and centralized crypto services operate freely in the United States under clear guidelines. In his words, “the commission will encourage our nation’s builders rather than constrain them with red tape and one-size-fits-all rules.”
Project Crypto Marks a Significant Shift in Crypto and Blockchain Adoption in the U.S.
Atkins explicitly developed Project Crypto in line with Trump’s Working Group report, a blueprint for reshaping cryptocurrency and blockchain in the United States. Following the recent legislative victories, such as the passage of the GENIUS Act and progress on the CLARITY Act, Project Crypto arrives to strengthen the crypto ecosystem on the heels of legal backing.
Reshoring the crypto economy is echoed in Project Crypto and also aligns with the crypto working group. It shows that all parties are working in alignment to fulfil Trump’s crypto objectives. Atkins’s initiative isn’t to stifle innovation, but to create a warm climate for crypto businesses to thrive. For industry participants, crypto projects can operate freely under clear regulations of Atkin’s initiative, enabling the growth of the ecosystem.
While Atkins wants to bring firms operating transparently but offshore back to U.S. soil, he must maintain market balance. Incentives must be balanced against regulations. Otherwise, he risks favoring crypto firms over investor protection.
What’s Next for Project Crypto
Project Crypto will shake up the United States’ financial markets, as well as the crypto ecosystem. A regulated U.S. market will welcome crypto projects and encourage competition, which is good for growth. For now, Atkins’ initiative awaits legal backing and implementation, which could take months.
For financial markets, industry participants, and users, the time for crypto has come. Project Crypto will make blockchain and innovation a core part of a regulated United States financial infrastructure.
