- SEC announces Project Crypto, targeting regulatory overhaul.
- Focus on crypto as non-securities in 13 words.
- Stakeholder engagement to shape regulatory framework.
The U.S. Securities and Exchange Commission launched “Project Crypto” on July 31, 2025, led by Chairman Paul S. Atkins, aiming to modernize digital asset regulations nationwide.
The initiative could reshape cryptocurrency markets by clarifying asset classifications and encouraging on-chain transitions, potentially affecting market strategies and capital flows.
Introduction
The U.S. SEC has unveiled “Project Crypto” as part of its effort to modernize digital asset regulations. This initiative seeks to reshape the handling of cryptocurrencies in financial markets, according to Chairman Paul S. Atkins.
Leadership roles involve Paul S. Atkins and Commissioner Hester Peirce. They aim to implement technical workstreams and enhance U.S. blockchain and crypto technology competitiveness. Stakeholder feedback is actively solicited through roundtables.
Market Impact
Expected market impact includes a shift from prior enforcement-focused regulations. The SEC intends to implement “clear and simple rules” for crypto distributions, custody, and trading, emphasizing that most crypto assets are not securities.
Financial markets may experience an influx of activity due to Project Crypto’s deregulatory stance. Regulatory innovation is prioritized to fuel on-chain transitions and capital market dynamics in the U.S.
Stakeholder Input
Stakeholder input will help mold the new regulatory framework. This represents a pivotal shift in U.S. digital asset policy, attracting capital and technological talent back to domestic markets.
Analysts anticipate technological advancements and increased on-chain activity if Project Crypto successfully clarifies compliance. International crypto liquidity flows to the U.S. might rise following regulatory adjustments.
A quote from Paul S. Atkins, Chairman, SEC, provides valuable insight: “Today, the SEC launches Project Crypto with the clear mandate to make America first in blockchain and crypto technology. The majority of crypto assets are not securities, and our regulatory approach will reflect this critical distinction.”
