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The SEC has announced the launch of “Project Crypto,” an initiative to modernize securities regulations and turn the United States into the global hub for crypto and blockchain innovation.
In Brief
The SEC has launched Project Crypto to update U.S. crypto regulation, enable self-custody, and attract innovation.
Chair Paul Atkins says most crypto assets are not securities and wants clearer rules to support growth.
The SEC will support super apps, DeFi integration, and self-custodied wallets as core pillars of the new framework.
Clear rules
Speaking in Washington, D.C., on July 31, SEC Chair Paul Atkins said the initiative is part of the agency’s response to President Trump’s goal of making the U.S. the “crypto capital of the world.” The project will implement key recommendations from the recent President’s Working Group (PWG) Report on Digital Market Data.
One of Project Crypto’s top priorities is to bring regulatory clarity to crypto asset distributions in the U.S. Atkins stated that most crypto assets are not securities and blamed legal confusion for driving innovation offshore. The SEC will also develop new tests to help determine whether a crypto asset qualifies as a security.
Project Crypto hopes to make custody and trading requirements more clear as well. Atkins criticized past approaches for limiting investor choice and pledged to modernize custody rules for digital assets held by registered intermediaries.
He emphasized that self-custody, the ability to hold and manage your own crypto assets in a personal wallet, is a fundamental American right:
I deeply believe in the right to use a self-custodied digital wallet to hold personal crypto assets and participate in on-chain activities like staking.
One license, many products
Another key goal of the initiative is to enable the rise of so-called “super apps”, platforms that allow broker-dealers to offer a wide range of products, including non-security crypto assets, under a single license. The SEC will issue new guidance to make this model legally viable without requiring multiple state or federal approvals.
The project also aims to update “archaic” rules that restrict the use of on-chain software systems in capital markets, including decentralized finance. Atkins said the SEC will create space for both intermediated and non-intermediated models.
A cross-agency effort
Project Crypto involves multiple SEC divisions and includes a dedicated Crypto Task Force led by Commissioner Hester Peirce. The SEC plans to explore exemptions and other authorities to ensure outdated regulations do not block progress. The initiative follows the recent passage of the GENIUS Act, which laid a foundation for tech-friendly financial reform.
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I’ve been passionate about crypto for nearly a decade, ever since I was young and first became curious about investing. That early spark led me to years of research, writing, and exploring the future of decentralized tech.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
