Key Takeaways:
- The SEC’s “Project Crypto” aims to modernize digital asset regulation by streamlining licensing and clarifying asset classifications.
- Chair Paul Atkins advocates for regulatory flexibility, legal self-custody rights, and protection for early-stage crypto projects.
- The SEC is shifting away from enforcement-first policies, favoring collaboration and aligning with CFTC oversight on spot crypto markets.
The U.S. Securities and Exchange Commission (SEC), under Chair Paul Atkins, has launched “Project Crypto,” a major initiative aimed at modernizing digital asset regulation.
Prompted by guidance from the President’s Working Group on Digital Assets, the project seeks to streamline licensing for brokerages, clarify the distinction between commodities and securities, and provide regulatory flexibility for early-stage crypto ventures, including ICOs and decentralized software protocols.
Today, SEC Chair Paul Atkins announced Project Crypto in a landmark speech, a bold initiative to modernize U.S. securities regulation for the blockchain era.
— Ondo Finance (@OndoFinance) July 31, 2025
His vision charts a clear path forward, one that embraces tokenized securities, stablecoins, and crypto-native… pic.twitter.com/GnuRLpt7v7
Atkins emphasized that legacy rules no longer suit the digital era, calling for protections such as the right to self-custody and discouraging the forced use of DAOs to avoid compliance.
Under Atkins’ leadership, the SEC has shifted from regulation-by-enforcement toward a more constructive, innovation-friendly approach.
This includes approving crypto ETFs, clarifying that staking income is not a securities transaction, and supporting in-kind creation/redemption mechanisms to aid institutional access.
Project Crypto also aligns with broader federal efforts outlined in the July report, “Strengthening American Leadership in Digital Financial Technology.”
The report calls for coordinated oversight between the SEC and CFTC, with the latter overseeing spot crypto markets.
It also addresses stablecoin policy, illicit finance, banking rules, and tax modernization.
Overall, the initiative signals a shift toward regulatory clarity and innovation support in the U.S. crypto sector.
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Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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