SEC Launches “Project Crypto” to Modernize U.S. Crypto Regulations

The SEC has unveiled "Project Crypto," a sweeping initiative aimed at overhauling U.S. securities regulations to position the country as the global epicenter of cryptocurrency and blockchain innovation. Chair Paul Atkins emphasized that most crypto assets do not qualify as securities, framing regulatory ambiguity as a key driver of offshore capital flight.

The initiative will prioritize clarifying custody rules, trading requirements, and asset classification—addressing long-standing industry pain points. Atkins signaled support for decentralized finance (DeFi) integration and self-custody solutions, marking a potential paradigm shift in the regulatory approach to digital assets.

This move aligns with broader White House objectives following the President's Working Group report, suggesting coordinated federal efforts to capture blockchain innovation. Market participants anticipate Ripple effects across trading platforms and token valuations as regulatory certainty improves.