SEC Chair Atkins Launches ‘Project Crypto’ to Modernize U.S. Rules for On-Chain
- SEC unveils Project Crypto to modernize outdated rules and bring U.S. markets on-chain.
- New rules aim to clarify crypto classifications and support legal market participation.
- Project supports tokenization, Super-Apps, and institutional adoption within U.S. markets.
The U.S. Securities and Exchange Commission (SEC) has introduced “Project Crypto,” a regulatory initiative aimed at bringing U.S. financial markets onto the blockchain. The project focuses on tokenization of real-world assets (RWAs), improved guidance on digital assets, and updated frameworks for trading crypto securities and commodities. It marks a pivot from enforcement to structured regulatory engagement.
SEC Chair Paul Atkins announced the move in a formal statement. He said the project will update securities laws for blockchain-native markets. He emphasized that most crypto assets do not qualify as securities. The Commission aims to clarify regulatory boundaries that have long caused uncertainty.
Tailored Crypto Rules Under Project Crypto
The Crypto Task Force will run the initiative under Commissioner Hester Peirce. Atkins directed SEC policy groups to assist the task force with the drafting of the proposed rule. The rules will be subject to public comment and notification. The goal is to enact the suggestions of the White House Digital Asset Working Group in a short period.
Project Crypto outlines plans to create tailored disclosures, safe harbors, and exemptions for crypto activities. These are initial coin offerings (ICO), airdrops and staking. The target is to harmonize compliance without hindering innovation. The SEC desires to see the industry crypto develop within the American markets according to the law.
The Commission also plans to work on classification guidelines. These will help define whether a digital asset is a security, commodity, or collectible. Atkins noted that this will reduce confusion caused by misuse of the Howey Test. He added that meme coins, for instance, may be categorized as collectibles.
The SEC is also working on new rules for custody, asset distribution, and trading platforms. These rules will affect how crypto exchanges and custodians operate under U.S. law. Atkins said outdated rules should not block financial innovation. Instead, modern rules must support both investor protection and market growth.
SEC and Senate Align to Fast-Track Crypto Reform
In parallel, the Senate Banking Committee has released a draft crypto market structure bill. The bill pushes for clear rules on registration, trading, and anti-money laundering. Project Crypto is designed to align with these legislative developments. Coordination between the SEC and Congress could speed up reform.
Another key area is institutional adoption. Atkins said major financial firms are requesting approval for tokenized stocks and bonds. These products are currently only available offshore. The SEC now aims to allow such offerings within the U.S. financial system.
Related: SEC Unveils Crypto ETP Listing Standards, Paving Way for Altcoin ETFs
Another aspect that the Commission has promoted is the creation of integrated platforms referred to as Super-Apps. The exchanges would enable the licensed broker-dealers to list crypto securities and commodities to be listed on a single platform. Single-market licensing would minimize regulatory disintegration and would open up access to digital assets markets.
The strategic plan relies on the regulatory framework that will have a combination of support to innovating and protection of the investors. Traditional or strict structures of projects that are found to be in compliance with SEC regulations will no longer be barred. Project Crypto brings in legal certainty to development and exchange processes, as well as to the process of digital financial players: institutions.
By promoting this initiative, SEC is trying to strengthen the leadership in blockchain technology of the United States. The Commission will establish the rulebook, including an amendment to its rulebook to provide a basis of regulated, transparent, and scalable digital asset markets. The strategy fits in the current technology with legal regulations that favor stability in the market.
The announcement symbolizes a change in SEC activities in the past. It is now all about modernization, transparency, and international competitiveness. Project Crypto is perhaps the most significant turning point of the development of American financial regulation.
