The US Securities and Exchange Commission (SEC) has taken a historic step in regulating crypto asset markets. Chairman Paul S. Atkins announced a new initiative called “Project Crypto,” outlining his goal of making the US the “crypto capital of the world.” The project includes comprehensive regulatory reform to transition US capital markets to on-chain infrastructures. Speaking at an event organized by the America First Policy Institute, Atkins emphasized the importance of maintaining American leadership in the digital age. He stated, “The future is coming very quickly, and the world is not waiting. As the United States, we cannot simply keep pace with this transformation; we must lead it.” According to SEC Chairman Atkins, Project Crypto encompasses a set of regulations that will modernize securities laws, make them compatible with on-chain markets, and make it easier for crypto entrepreneurs to operate in the U.S. The project will also be compatible with the gold-standard stablecoin regulations introduced by President Trump's recently signed GENIUS Act. Project Crypto's goals include: Establish clear rules for the distribution of crypto assets Creating legal ground for tokenized securities Protecting self-custody and digital wallet usage Offering more options in crypto asset storage and trading services Enabling crypto “super-apps” Enabling decentralized finance (DeFi) software to operate under SEC regulations Offering “innovation exemptions” for innovative business models Related News: BREAKING: Unexpected Move from SEC - They Announced an Initiative Called “Project Crypto” Atkins noted that the SEC's vague stance has driven crypto startups abroad in the past, saying, “This will change now.” Project Crypto will introduce clear and enforceable rules for distribution methods such as token issuance, airdrops, and network rewards. Furthermore, US investors will be encouraged to participate in these projects with legal assurance. “Most crypto assets are not securities,” Atkins said, adding that the confusion surrounding the Howey test would be cleared up with clear lines. The new regulatory approach aims to separate crypto asset types, such as digital collectibles, digital commodities, and stablecoins, into clear categories. Atkins stated that on-chain software, particularly decentralized applications (DeFi), will become an integral part of securities markets. Therefore, the SEC will build a market structure suitable for on-chain software. Updating existing systems, such as the Regulation NMS (Reg NMS), to accommodate this change is on the agenda. Additionally, the infrastructure and rules that will enable securities to be traded on-chain will be developed. The SEC will protect developers, move away from systems requiring centralized intermediaries, and create a liberal environment for software publishers. Project Crypto aims to foster entrepreneurship and unleash the power of American innovation. As part of this effort, it plans to provide “innovation exemptions” for startups that don't fully comply with the SEC's traditional rules but want to get to market quickly. These exemptions will be based on core principles like transparency, compliance, and compliance, but will be designed to avoid stifling innovation. *This is not investment advice. Continue Reading: BREAKING: Unexpected Move from SEC – They Announced an Initiative Called “Project Crypto”
