SEC’s Paul Atkins Unveils Project Crypto to Modernize Regulatory Framework

SEC Commissioner Paul Atkins has declared that "most crypto isn’t a security," marking a pivotal shift in regulatory stance. His newly announced Project Crypto aims to overhaul outdated SEC policies, replacing them with purpose-built rules for crypto asset distribution, trading, and custody. The initiative, backed by the TRUMP administration’s Working Group report, seeks to end the forced application of 1930s-era regulations to blockchain innovations.

Atkins criticized the SEC’s historical reliance on the Howey test, arguing it has stifled growth through over-compliance. "Developers treat every token like a security just to avoid lawsuits," he noted at the America First Policy Institute. Project Crypto will introduce tailored disclosures and exemptions for ICOs, airdrops, and staking rewards, signaling a MOVE away from enforcement-heavy strategies.