SEC’s Bold Move: ’Project Crypto’ Kicks Off Under Chair Paul Atkins’ Leadership

Wall Street's watchdog dives headfirst into crypto—with a twist.

In a move that sent shockwaves through both traditional finance and crypto circles, the SEC just unveiled 'Project Crypto' under newly appointed Chair Paul Atkins. The initiative marks the agency's most aggressive foray into digital asset regulation to date.

Decoding the SEC's crypto gambit

While details remain scarce, insiders suggest the project will establish clear guidelines for token offerings and DeFi platforms—finally giving institutional investors the regulatory clarity they've been begging for (between martini lunches).

The crypto market reacted with its signature volatility—BTC briefly spiked 5% before settling, while regulatory-sensitive altcoins saw wild swings. Traders clearly can't decide whether to cheer or jeer.

Atkins—a known advocate for measured crypto adoption—appears to be walking a tightrope between innovation and investor protection. Whether this becomes a landmark moment or just another bureaucratic footnote depends entirely on execution.

Because nothing says 'financial revolution' like a government committee.

Atkins outlines new priorities

Atkins’ Thursday address laid out a roadmap for the SEC, emphasizing clear rules for bitcoin custody, trading, and allowing intermediaries such as exchanges to become ‘super-apps’ offering a range of services.

He urged for a regulatory stance that meets innovation “with thoughtfulness rather than fear,” stating:

“When our regulatory posture is calibrated to meet innovation with thoughtfulness rather than fear, America’s leadership position has only grown stronger.”

He also highlighted the importance of modernizing custody requirements and fostering experimentation with on-chain technologies, including tokenizing traditional assets.

Return of companies to the US

A central goal of Project crypto is to encourage companies that left the U.S. during the Gensler era to return by creating a friendlier regulatory environment.

Atkins stressed the need to support ‘builders’ and facilitate new business models, in contrast to the previous administration’s focus on enforcement.

Gensler era comes to an end

Under Gensler, the SEC targeted major bitcoin companies like Coinbase and Gemini, citing alleged violations of securities laws.

Atkins, a former SEC commissioner and adviser to blockchain projects, is seen as part of a broader shift driven by the 2024 election, which saw pro-bitcoin officials appointed across the administration.

The SEC, even before Atkins’ swearing-in, began reversing key Gensler actions, including dropping lawsuits against exchanges and embarking on new rulemaking.

Ongoing debate in Congress

While Atkins sets a new tone at the SEC, Congress remains locked in debate over broader digital asset legislation, with the House passing a bill but the Senate yet to act.