SEC Launches “Project Crypto” in 2025: A Bold Move to Modernize U.S. Crypto Regulations

• What Is Project Crypto?
• Why Is Regulatory Clarity a Top Priority?
• How Will "Super Apps" and DeFi Benefit?
• Who’s Leading the Charge?
• What’s Next for Crypto in the U.S.?
• FAQs

In a landmark move, the U.S. Securities and Exchange Commission (SEC) has unveiled "Project Crypto," a sweeping initiative aimed at overhauling cryptocurrency regulations to position the U.S. as the global hub for blockchain innovation. The project, announced on July 31, 2025, by SEC Chairman Paul Atkins, focuses on regulatory clarity, self-custody rights, and fostering "super apps" while integrating decentralized finance (DeFi) into mainstream markets. This article dives deep into the key pillars of the initiative, its implications for investors, and why it could be a game-changer for the crypto industry.

What Is Project Crypto?

Project crypto is the SEC’s response to President Trump’s vision of making the U.S. the "crypto capital of the world." The initiative aims to modernize outdated regulations, clarify the classification of crypto assets, and empower investors with self-custody rights. Chairman Atkins emphasized that most cryptocurrencies are not securities and criticized past regulatory ambiguity for driving innovation offshore. The project will introduce new tests to determine whether a crypto asset qualifies as a security, alongside updated custody and trading rules.

Why Is Regulatory Clarity a Top Priority?

Speaking in Washington, D.C., Atkins highlighted the confusion surrounding crypto regulations as a major barrier to growth. "The lack of clear rules has stifled innovation and pushed projects to friendlier jurisdictions," he said. Project Crypto seeks to resolve this by:

• Defining clear guidelines for crypto asset distributions.
• Modernizing custody rules to allow self-hosted wallets (Atkins called this a "fundamental American right").
• Creating a framework for intermediaries to hold digital assets securely.

Atkins even shared a personal stance: "I believe in the right to use self-custody wallets for staking and managing crypto—it’s about individual freedom."

How Will "Super Apps" and DeFi Benefit?

One of Project Crypto’s boldest goals is enabling "super apps"—platforms where brokers can offer diverse crypto products under a single license. The SEC will issue guidance to streamline approvals, eliminating the need for multiple state or federal sign-offs. Additionally, the initiative targets "archaic" rules restricting blockchain software in capital markets, paving the way for DeFi integration. "We’re creating space for both mediated and unmediated models," Atkins noted.

Who’s Leading the Charge?

The effort is interagency, with a dedicated Crypto Task Force led by SEC Commissioner Hester Peirce. The team will explore exemptions to prevent outdated regulations from blocking progress. This follows the GENIUS Act, which laid the groundwork for tech-friendly financial reforms. Analysts at BTCC suggest the project could attract $50B in crypto investments by 2026, citingdata showing rising institutional interest.