SEC Unveils ’Project Crypto’ for Tiered Regulation, Stablecoins Gain Legal Clarity Under GENIUS Act

The U.S. Securities and Exchange Commission has taken a decisive step toward crypto market clarity with its 'Project Crypto' initiative. Rather than creating new laws, the SEC will adapt existing securities regulations through a tiered risk model for digital assets. Crypto exchanges can now pursue specialized ATS licenses, establishing the first U.S. framework for spot trading. The move notably accommodates stablecoin issuers and DeFi protocols with tailored registration pathways.

Stablecoins emerge as regulatory winners in 2025 under the GENIUS Act, marking a stark departure from earlier uncertainty. The legislation builds upon frameworks pioneered by the EU and Singapore, providing the certainty that eluded projects like Facebook's Libra. Market participants view both developments as watershed moments for institutional adoption.