On July 31, the Securities and Exchange Commission (SEC) Chairman Paul Atkins (Chair Atkins) presented “Project Crypto,” an initiative aimed at positioning the U.S. as the global leader in the digital finance world. In his address, Chair Atkins outlined his vision to modernize securities rules and regulations, enabling America’s financial markets to fully embrace blockchain technology and move on-chain. This plan solidifies President Trump’s vision of making the U.S. the crypto capital of the world and signals a new era of regulatory clarity and innovation for the crypto industry within the U.S.
A Roadmap for Regulatory Modernization
“Project Crypto” is an effort to update securities rules to accommodate the new age of digital assets and blockchain technology. Chair Atkins emphasized the need to bring crypto businesses back to the U.S. by establishing a competitive environment through clear regulatory guidelines. In his address, Chair Atkins laid out a series of priorities for SEC staff, which includes drafting “clear and simple rules of the road” for different crypto activities such as custody and trading. A key priority of Chair Atkins is to allow market participants and crypto intermediaries, such as exchanges, to evolve into multifunctional platforms or “super-apps” that can offer a broad range of services. These priorities align with recent legislative efforts, such as the GENIUS Act for stablecoin regulation and follows a July 30 report by President Trump’s Working Group on Digital Assets, which advocates for a rational regulatory framework.
Chair Atkins highlighted that “most crypto assets are not securities,” a stance that departs from previous SEC interpretations. By clarifying token classifications and easing regulatory compliance burdens, “Project Crypto” aims to drive innovation within the U.S. while simultaneously protecting investors from fraud. This initiative directs the SEC’s policy divisions to work with the Crypto Task Force to develop proposals to implement the recommendations set forth in the President’s Working Group report. The goal of this initiative is to ensure that the U.S. “remains the best place in the world to start a business, develop cutting-edge technologies, and participate in capital markets.”
Implications for Businesses and Investors
The announcement has significant implications for businesses, investors, and financial institutions. A key aspect of “Project Crypto” is the focus on enabling U.S. financial markets to have the ability to operate on-chain. Chair Atkins emphasized that “decentralized finance and other forms of on-chain software systems will be part of our securities markets and not drowned out by duplicative or unnecessary regulation.” By enabling assets like bonds and stocks to be tokenized on-chain, “Project Crypto” could reshape how capital markets operate, offering greater efficiency and transparency through blockchain technology. The focus on custody and trading reforms could be a catalyst that spurs the development of crypto exchanges as comprehensive financial platforms, enhancing their role in the broader economy.
What’s Next for “Project Crypto”
Chair Atkins’s speech marks another shift in the SEC’s crypto policy. The SEC will leverage its existing authorities to propose modernized securities rules and regulations to enable America’s financial markets to move on-chain. The SEC is signaling that the digital asset economy should flourish under a reimagined regulatory structure, not be sidelined by the burden of overregulation. If successfully implemented, “Project Crypto” could bring tokenization, DeFi, and crypto innovation squarely into U.S. capital markets in turn reshaping the country’s position in global financial technology.
